Best States for Small Businesses in 2023
If you’re trying to decide where to start your small business, location is certainly an important factor to consider. In great news for bay-state entrepreneurs; Massachusetts was just ranked in the top 5 states for small business startups. Read on to find out more about why Boston is a great choice for small businesses.
Marino & Marino, P.C. Source: Lendio
Post-pandemic America is an outstanding place to start a small business, because a staggering 10 million new small businesses began in 2021 and 2022—a record for such applications, according to a statement released on Jan. 17, 2023 from the White House.
The 2020s has been one of the most challenging decades in history for small business owners. The economic impact from the global pandemic continues to ripple through the American and global economies. Inflation, remote working, and the unprecedented migration of educated workers to new locations have been just a few of the challenges that small businesses faced. Amid such paradigm shifts in how—and where—Americans work and live, Lendio commissioned this study to see the state of the small business landscape across the country.
We explored trends in nine metrics that are critical to the success of small business owners in 2023’s rapidly changing and uncertain landscape. These metrics included small business lending, cost of living, real estate data, educated worker migration, corporate tax rates, state-level incentives for business owners, and more. Our key findings include:
Top states – Texas, Florida, and Ohio rank top in our list due to low taxes, mass migration of educated workers, sufficient business funding, and the fact that more than half of all startups had survived at least five years in each state, which was above average.
Bottom states – Hawaii, Maine, and New Hampshire are the bottom three states, due to low business funding and venture capital availability, limited local incentive programs, high tax rates, and high cost of living.
The states that rank highest are those that experienced large influxes of migration, with reasonable cost of living. The availability of business funding, venture capital and local incentive programs were also important factors that impacted the rankings.