Female entrpreneurs have special hurdles to overcome as they start out in business, and being located in certain states may be helpful, according to a new ranking.
The website FitSmallBusiness.com has released a report that assesses each state on how friendly an environment they provide for female owned business start-ups. The analysis looked at the business climate and opportunity in each state, the number of female-owned business, the economic and financial health the states provide and the safety and well-being their environments provide for women.
The website noted that a University of New Hampshire found that the number of female entrepreneurs is growing in the U.S., and that 23 percent of entrepreneurs seeking angel investing in 2018 were female, up from 19% in 2014. The website added that, since 1972, female-owned businesses in the U.S. have increased 3,000 percent.
But women continue to face hurdles. A recent study by Biz2Credit found that women who apply for business loans typically get 45 percent less than their male counterparts, FitSmallBusiness.com said.
These are the state, in ascending order, that were deemed the best for women entrepreneurs:
10. Georgia
The state has one of the nation’s highest numbers of high-growth companies per capita, is among the top three states for business climate and opportunity and has a lower-than-average cost of living.
9. Wisconsin
The state ranked fourth for business opportunities for women and fifth for health and safety.
8. North Dakota
The state ranked fourth in the nation for women's safety and social support, and it has a low corporate tax rate of 4.31 percent and an affordable cost of living.
7. Massachusetts
Benefitting from its high number of college and universities, the state has a higher-than-average percent of start-ups that succeed and a high density of high-growth businesses.
6. North Carolina
Women who go in business here have a higher-than-average percent of start-up success and a lower-than-average cost of living. The corporate tax rate is only 3 percent.
5. Alabama
The state's low cost of living and low tax burden helped make this state the fourth best for business opportunities for women.
4. Washington
Seattle is a magnet for business start-ups, partly because of all the talent embedded with companies located in the area, including Microsoft, Amazon and Google. Low business taxes also help.
3. Minnesota
The state ranked first in health, safety and overall quality of life for women and it's known for having a good number of support organization for female business owners.
2. Ohio
A relatively low cost of living and a lack of corporate taxes put this state high in the rankings.
1. Texas
The state has a legal and economic climate, according to FitSmallBusiness.com. The state has no corporate or income taxes and a high rate of start-up growth.
The full report can be viewed here.
