North Carolina has been named the best state in America to start a business from the entrepreneur-focused website FitSmallBusiness.com. Our #1 ranking was largely due to our low taxes, strong labor market, and high startup activity.
The website analysed 7 different categories across all 50 states to determine which state had the most conducive environment to small business success.
The categories included;
- Access to Capital – Venture capital and small business loans (5% weighted)
- Startup Activity – Rate of new entrepreneurs and survivability of business (10% weighted)
- Taxes – Corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax (20% weighted)
- Cost of Living – Grocery, housing, utilities, transportation, and health (15% weighted)
- Labor Market – Location desirability, and bachelor degree attainment (20% weighted)
- Quality of Life – Access to healthcare, education, and physical safety (15% weighted)
- Cost of Starting a Business – Per capita income and commercial rent (15% weighted)
Here is where each state in America ranks:
Here are the top 10 states and where they scored in each category:
According to FitSmallBusiness.com, “The Tar Heel State comes in at the #1 spot for states to start a business, as it dominated the two categories that we consider most important to starting a business: labor market and taxes. The state has high rankings in corporate and unemployment insurance taxes. Its labor market is flourishing as the state grabbed the 6th spot in location desirability. External job seekers are likely lured to the state by thriving businesses, a great sign for would-be entrepreneurs. North Carolina ranks 15th in both rates of new entrepreneurs and business survivability sub-categories.”
You can read more about how they ranked each state, and how each state scored in each category on their website here.
Do you agree with the rankings?