With the COVID-19 pandemic leading to more than 200,000 permanent business closures but the country starting to recover, the personal-finance website WalletHub today released its report on 2021's Best & Worst States to Start a Business, as well as accompanying videos and expert commentary.
To determine the most fertile grounds for planting and growing new ventures, WalletHub compared the 50 U.S. states across 28 key indicators of startup success. The data set ranges from financing accessibility to COVID-19 cases to office-space affordability.
|Best States to Start a Business||Worst States to Start a Business|
|1. Texas||41. Virginia|
|2. Georgia||42. Delaware|
|3. California||43. Pennsylvania|
|4. Florida||44. Missouri|
|5. Idaho||45. Alaska|
|6. Utah||46. Wyoming|
|7. Colorado||47. West Virginia|
|8. North Dakota||48. Rhode Island|
|9. North Carolina||49. Connecticut|
|10. Massachusetts||50. New Jersey|
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), $45,081, which is 1.9 times lower than in Maryland, the state with the highest at $84,805.
- Massachusetts has the highest share of college-educated population, 43.70 percent, which is 2.1 times higher than in West Virginia, the state with the lowest at 20.60 percent.
- Wyoming has the most startups per 100,000 residents, 214.10, which is 3.2 times more than in West Virginia, the state with the fewest at 67.13.
To view the full report and your state's rank, please visit: