The following is a post from Patrick G. Mackaronis. Patrick is the Director of Business Development for New York City-based social network Brabble. In this post, Patrick has enlisted the states that are best for start a Business. Patrick can be best reached on Twitter at @patty__mack.
People often consider the ‘whys’, ‘hows’, and ‘whats’ when they want to establish businesses. In addition to these, another major factor that should not be taken for granted is ‘where’. If you are an entrepreneur, you will have a more conducive atmosphere in some states than in others. As they launch their businesses, entrepreneurs need as much help as possible in the present economy.
However, there is no single method that you can use to gauge the business environment in any given state. Some of the factors that you may need to bear in mind include; the amount of required regulations, the present economic growth levels, and education levels of the workforce.
It is better to consider as many issues as would be practical. There are two detailed studies that measure attractive business atmosphere in 50 states by using entirely different methods: Small Business Survival Index conducted by the Small Business and Entrepreneurship Council, and Kauffman Foundation’s New State Economy Index.
Taking both studies into consideration, the following is a list of the best states for entrepreneurs.
The New State Economy Index ranks the state second while the Small Business Survival Index ranks it fifth. It is a leading state as far as energy efficiency is concerned, where more sources of alternative energy are used. Its manufacturing sector is also very productive. The taxes in the state are also relatively low and it has no personal capital-gains or income taxes.
The state brings a rich blend of technological sophistication and a highly-educated workforce on one hand and low taxes for businesses and individuals on the other. Old dominion is also one of the fastest growing states.
This is among the states experiencing the fastest growth. The education level of the workforce is the third in the whole country. It is also in the first half of the states as far as capital gains, income, property taxes, and consumption are concerned.
This is an ideal state for establishing a business with an international reach. Its manufacturing sector is the most internationally-focused in the country, with export sales being $69,268 per worker. Another advantage is that it has the lowest workers’ compensation costs.
Despite the fact that the state is experiencing a housing crisis, it does not have individual income taxes and the unemployment and corporate taxes are relatively low. It also adapts well to technological trends.
Market conditions may change, but states with pro-business policies tend to be reliable.