With around 20% of new businesses failing within one year and inflation making entrepreneurship even more difficult, the personal-finance website WalletHub today released its report on 2023’s Best & Worst States to Start a Business, as well as expert commentary.
To determine the most fertile grounds for planting and growing new ventures, WalletHub compared the 50 U.S. states across 27 key indicators of startup success. The data set ranges from financing accessibility to the percentage of residents who are fully vaccinated against COVID-19 to office-space affordability.
South Dakota ranked 18th overall in the study. It fared best for business costs, ranking fifth; and worse for business environment, where it ranked 34th.
| Best States to Start a Business | Worst States to Start a Business |
| 1. Utah | 41. Maryland |
| 2. Florida | 42. Virginia |
| 3. Texas | 43. North Dakota |
| 4. Colorado | 44. Pennsylvania |
| 5. Idaho | 45. Wyoming |
| 6. Georgia | 46. Rhode Island |
| 7. Arizona | 47. New Jersey |
| 8. Nevada | 48. West Virginia |
| 9. Oklahoma | 49. Connecticut |
| 10. California | 50. Alaska |
Best vs. Worst
- Iowa has the cheapest average annual rent for office space, $12.08 per square foot, which is 2.2 times cheaper than in New York, the state with the most expensive at $26.66 per square foot.
- Mississippi has the lowest labor costs (median annual income), $46,511, which is 1.9 times lower than in Maryland, the state with the highest at $87,063.
- Massachusetts has the highest share of college-educated population, 44.50 percent, which is 2.1 times higher than in West Virginia, the state with the lowest at 21.30 percent.
- Wyoming has the most startups per 100,000 residents, 214.67, which is three times more than in West Virginia, the state with the fewest at 72.20.
To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/
