BALTIMORE, MD—Being an entrepreneur is hard, as around one in five new businesses fail within the first year. Being in the right state can make the process a lot easier, though, and Utah is the best state for starting a business, according to a new report by the personal-finance website WalletHub. It’s followed by Georgia, Florida, Idaho and Nevada. The report analyzed 25 indicators of business-friendliness across three categories: business environment, access to resources, and business costs.
“Utah is the best state for starting a business because businesses have greater access to loans than in any other state, and Utah has the largest annual employment growth in the country, at nearly 2.5%, “said Cassandra Happe, an analyst at WalletHub. “During a time when money is tight, having ready access to capital and being in a state where business is booming can mean the difference between a startup thriving and dying during its first few years.”
Unfortunately, Maryland was ranked the fourth-worst state in which to start a business.
Best and Worst States for Starting a Business
| Best States | Worst States | |
| 1. Utah | 41. Missouri | |
| 2. Georgia | 42. Hawaii | |
| 3. Florida | 43. Pennsylvania | |
| 4. Idaho | 44. New Jersey | |
| 5. Nevada | 45. New Hampshire | |
| 6. Arizona | 46. West Virginia | |
| 7. Colorado | 47. Maryland | |
| 8. Texas | 48. Alaska | |
| 9. North Carolina | 49. Connecticut | |
| 10. Tennessee | 50. Rhode Island |
Starting a Business in Maryland (1=Best; 25=Avg.):
Overall Rank for Maryland: 47th
- 27th – Avg. Growth in Number of Small Businesses
- 46th – Office-Space Affordability
- 50th – Labor Costs
- 45th – Availability of Human Capital
- 25th – Avg. Length of Work Week (in Hours)
- 44th – Cost of Living
- 49th – Industry Variety
Each of the best states for starting a business brings something unique to the table. For example, Georgia has one of the highest entrepreneurship rates in the country, and some of the lowest taxes. Florida has one of the highest GDP growth rates, and its working-age population is growing quickly. Iowa has a very high business-loan availability, and Nevada keeps the cost of providing health insurance to employees low.
“Starting a business is a difficult and risky process, but where you live can highly influence your chances of success. Before establishing a business in any location, make sure to do research to ensure it’s an ideal place for your customer base, has enough labor and supplier availability, and suits your needs when it comes to financing,” said Happe.
