Looking for the Best State to Start a Business? Consider These Reports

If an asterisk should accompany any term wherever it is seen, the word “best” ranks right up there. After all, what’s best for you invariably depends upon your circumstances. For example, if you’re looking for the best state in which to start a business, are you concerned about costs like small business liability insurance? Do you need a large and highly educated workforce? Do you need ready access to capital? Ready access to your most pressing needs is what should really determine where you land.

Your Results May Vary

Released within days of one another in July of 2017, two different reports by two different publications named two different states as being number one on their lists of the best states to start a business.

As its primary criteria, Fitsmallbusiness.com valued:

-Ready Access to Capital

-Volume of Startup Activity

-Low Taxes

-Low Cost of Living

-Strong Labor Market

-Quality of Life

-Low Cost of Starting a Business

Meanwhile, Wallethub.com placed the most weight on:

-Business Environment

-Access to Resources

-Business Costs

While Wallet Hub’s list is shorter at first glance, when you drill down into it, you find its categories encompass factors like office space affordability, share of college educated population, five-year business survival rate and the number of startups per capita.

While there is considerable overlap in terms of the criteria, the lists arrive at two different conclusions: North Carolina and North Dakota.

The Case for North Carolina
Fit Small Business’ two key factors in its determination of North Carolina were the quality of the labor market and low taxes. The state’s favorable rankings in corporate and unemployment insurance taxes were the primary draw, followed closely by the overall desirability of the location of the state for attracting a capable labor force.

The Case for North Dakota
Meanwhile, Wallet Hub valued North Dakota’s overall business environment, access to resources and low operating costs. It also considered the state’s highest average growth in the number of small businesses and most accessible financing as worthy attributes. However, it did admit North Dakota came up short in terms of human capital and spending on incentives as a percentage of GDP.

On the Other Hand…
Remarkably, while the two lists differed widely over which state deserved the top spot, there was a measure of concurrence on second and third place. Both lists pegged Utah and Texas as numbers two and three, though they disagreed on the order; Wallet Hub gave Texas the nod for number two, while Fit Small Business named Utah first runner up.

Ultimately, when you’re looking for the best state to start a business, it comes down to what’s best for you. Whenever you consult lists such as these, consider the parameters defining the asterisk to determine whether the “best” is the best for you.

Wherever you decide to launch your small business, CoverHound can help you find the best policies at the best rates. Get your small business liability insurance quote today!