Florida is one of the best states to start a new business, according to a study conducted by WalletHub.
Starting a business is never easy. 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. Add in a lingering COVID-19 pandemic, which resulted in 200,000 more permanent business closures than usual within a year of the pandemic’s start, and starting a business in 2021 seems like a Herculean task.
Despite these figures, a record number of Americans a starting a new venture, according to U.S. Census Bureau data. While some areas of the country are more conducive to entrepreneurship than others, the Sunshine State boasts one of the best business climates.
The report conducted by the personal finance website found that Florida is a hub for entrepreneurs, landing at No. 4 on WalletHub’s 2021’s Best and Worst States to Start a Business with a total score of 55.84.
WalletHub compared the 50 states across 28 key indicators of startup success to determine the most fertile grounds in which to launch and grow an enterprise. Some of the metrics used in the report include startups per capita, highest average growth in small businesses, and most accessible financing.
Florida excelled in several key metrics, despite the pandemic impacting many industries in the state. Florida ranked 4th in average growth and 5th in business climate. Florida also ranked in the top 25 in other categories, including access to resources and business costs.
Texas took the top spot on the list with a score of 57.98. Georgia ranked second with a score of 56.92, while California narrowly edged out Florida with a score of 56.58. The worst states to start a new business were Wyoming, West Virginia, Rhode Island and Connecticut, with New Jersey officially holding the title as the worst state to start a business.