Location is everything when it comes to starting a new business. And according to a new study released by personal financial website WalletHub, Texas is near the top of the list as one of the best states for entrepreneurs to get their feet wet.
The study, which uses 20 key indicators, compares startup success in 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, with the Lone Star State coming in as the No. 2 top state in the country to start a new venture.
Texas ranks No. 2, just behind North Dakota and ahead of Utah. The Lone Star State receives high marks for Best Environment (No. 3) and Access to Resources (No. 10), but scores in the middle of the pack for Business Costs (at No. 25).
As well, WalletHub places Texas as No. 2 for Highest Average Growth in Number of Small Businesses, No. 4 for Longest Average Work Week (in hours), and No. 5 for Highest Total Spending Incentives as a percentage of GDP.
New business owners may want to steer clear of Maryland, New Hampshire, and New Jersey, which placed last on the list at No. 48, No. 49, and No. 50, respectively. Other low-ranking states include Rhode Island, Hawaii, Pennsylvania, and Connecticut.
According to U.S. Bureau of Labor Statistics data, about a fifth of all startups typically don’t survive past year one of operation, and nearly half never make it to their fifth anniversary.