Florida cleaned up in a new study as the best state to start a small business.
The study, from Capital on Tap, a business credit card company, looked at eight factors:
- Number of entrepreneurs
- Number of jobs created by startups
- Firm survival rates
- Number of new employer business
- New employers
- Corporate tax rate
- Labor costs/median wage
- Average small business loan per employee
The data from these eight factors were ranked, combined and then weighted depending on how important a factor was to starting a business.
Florida, with a 5.5% corporate tax rate and most jobs created by startups, was rated the best state. It has the No. 3 highest amount of small business loans secured per number of employees, at $4,913.
The state was followed by Texas at No. 2. Vermont is the worst state to start a business, according to the study.
“Entrepreneurship is driven by the desire for independence. This includes the freedom to pursue your passion, choose your workplace and working hours, and foster personal growth,” Damian Brychcy, COO at Capital on Tap, says in a release. “While starting a business entails significant risks, including financial, reputational, and scalability risks, this research provides valuable insights when it comes to the business climate in different states to help new entrepreneurs in making informed decisions, and creating a favorable environment for their business.”