Many older people are tired of working for others and want to use their experience to start their own small business, but the odds may be against them.
Slightly more than half of new business owners are between 50 and 88 years of age and more than two-thirds start their business in their home. Eighty-two percent use their own money or borrow from family and friends. But half of small business that are created do not last five years.
It takes more than startup funds and a willingness to work to be successful. It takes a friendly business environment, access to other financing and the availability of an educated workforce. Some states provide these benefits, while others leave the business owner to his or her own resources.
WalletHub, an online education and data resource, ranked the states to see where it is harder to start a small business. Following are the states listed in descending order that are the least business-friendly. The entire report is available here.
10. Arkansas
Arkansas has a poor business environment, low access to resources and the third least educated workforce.
9. Alabama
Alabama ranks the worst for its business environment and only in the middle for access to resources.
8. Delaware
In Delaware, business costs are high and the business environment is poor.
7. Connecticut
Connecticut has the second highest business costs in the nation and the third highest labor costs.
6. Pennsylvania
The Keystone State is not key to small businesses, ranking poorly in both overall business environment and in business costs.
5. Hawaii
Hawaii may be a vacation paradise but for business it gets low scores with high overall business costs, including the fifth highest labor costs in the country.
4. Rhode Island
This tiny state gets only mediocre rankings for business costs and access to resources and scores fourth lowest in the nation for having an overall poor business environment.
3. Maryland
Maryland ranks dead last for high labor costs and also has expensive office space.
2. New Hampshire
New Hampshire provides few incentives for small businesses and ranks next to last for the lowest available amount of human capital.
1. New Jersey
New Jersey earned WalletHub’s last place in its business friendly rankings by having the highest overall business costs and particularly high labor and office space costs. It also has one of the least accessible financing rates.
