Location is everything when it comes to starting a new business, and according to a new study by personal financial website WalletHub, Texas is the second best state for entrepreneurs to get their feet wet.
The study, which uses 20 key indicators in three categories, compares startup success in the 50 states to determine the best — and worst — places to launch and grow a budding enterprise. Factors taken into account include financial accessibility, availability of human capital, and office space affordability.
Texas ranks No. 2, just behind North Dakota and ahead of Utah. In the three broad categories, the Lone Star State receives high marks for environment (No. 3) and access to resources (No. 10) and appears in the middle of the pack for costs (at No. 25).
Among individual metrics, Texas has the second highest growth in the number of small businesses and ranks fifth for highest total spending on incentives as a percentage of GDP. We also have the fourth longest work week.
According to U.S. Bureau of Labor Statistics data, about one-fifth of all startups don’t survive past year one of operation; nearly half never make it to their fifth anniversary.
New business owners may want to steer clear of Maryland, New Hampshire, and New Jersey, which placed last on the list at Nos. 48, 49, and 50, respectively. Other low-ranking states include Rhode Island, Hawaii, Pennsylvania, and Connecticut.