Location is one of the biggest determining factors in success among new business startups says Steven R Pietro Business Owner.
With location seemingly so crucial to success among fledgling businesses, a popular personal finance website has completed a study. The study aimed at identifying the top U.S. states for new startups. The study, completed by WalletHub, looked at average growth among small businesses, access to financing, labor costs, availability of human capital, and most affordable office space, alongside other factors. These and other criteria were then split into three dimensions, first among which was the business environment. “For the purposes of the study, business environment looked at factors such as five-year business survival rates, industry variety, and job growth,” reveals Steven R. Pietro, a corporate lawyer based in Florida.
Steven R Pietro Business Owner Access to Resources
Second, meanwhile, was access to resources, while business costs made up the third dimension. Pietro explains that business costs addressed everything from corporate taxes to the cost of living. While access to resources looked at working-age population growth and financing accessibility, for example.
“The study also consulted a panel of experts from Loyola University Maryland, Boston College, William Marsh Rice University, University of Maryland, and Temple University as part of the decision-making process,” the corporate lawyer reveals. Taking into consideration all 50 U.S. states, the study discovered Texas to be the best place for startups in 2018-2019.
The second largest state in the country by both area and population, Texas. Texas, ranked consistently well across almost all of WalletHub’s criteria, according to Pietro. “Texas took a top ten result in many areas, putting it well ahead of other states who were less consistent, ranking well in some places, but performing poorly in others,” he adds. Corporate lawyer Steven R. Pietro’s home state of Florida ranked sixth.
WalletHub used sources including the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and the U.S. Bureau of Economic Analysis, plus twelve others, such as the Council for Community and Economic Research and the National Venture Capital Association from which to extrapolate data.
Best Overall Business Environment Ranking
In first place, Texas also topped the overall business environment rankings. Second place Utah meanwhile came top for access to resources. Overall, Georgia came third, Montana fourth, and Oklahoma fifth. Sixth through tenth were Florida, North Dakota, California, Arizona, and Colorado.
“California ranked eighth, despite coming almost bottom of the business cost rankings, thanks to strong scores in business environment and access to resources,” points out Pietro, also highlighting that only New York and New Jersey scored more poorly on business costs.
“Bottom of the list overall,” he adds, wrapping up, “were West Virginia, Pennsylvania, Vermont, Rhode Island, New Hampshire, and Hawaii.”