Location is an important factor when it comes to opening a new business, and which state entrepreneurs Open a New Window. Choose to start a new venture can have a major impact.
A new study released by WalletHubOpens a New Window. on Monday noted “bad location” is typically the top issue failed startups cite after closing up shop. To determine which spots in the U.S. will give entrepreneurs the best shot, the personal finance site examined data from the U.S. Bureau of Labor Statistics.
Texas was ranked the best state overall to start a business, according to the study. The second largest U.S. state has the best “business environment,” which includes several factors including the length of the work week, business survival rate and job growth. Texas was also among the top five states to have the highest average growth in the number of small businesses.
Coming in second was Utah — with Georgia, North Dakota and Oklahoma rounding out the top five. North Dakota appears to have the most startups per 100,000 residents and also has the most accessible financing.
A majority of the states considered the worst places to start a business were located on the East Coast, with the exception of Hawaii. Rhode Island was ranked the worst state for entrepreneurs to open their doors to their new business even though it has one of the shortest average work weeks.
WalletHub’s study also found that New York had the most expensive average annual rent for office space at $26.66 per square foot. For people looking for the cheapest rent, head to Iowa where office space comes at $12.08 per square foot.
With: Foxbusiness.com
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