A new study ranks states on how good a job they do in allowing businesses to thrive.
The research was conducted by the law firm Schmidt & Clark and was based partly on the number of business applications each state generated over one year ending in November 2023.
The law firm also looked at the states' annual real gross domestic income changes in the third quarter, and how the states ranked for the year in customer friendliness and business failures for the year since March 2022.
“Business is the driving force of America," the law firm said in a press release. "In fact, small businesses generate 1.5 million jobs per year in the United States."
The following states in ascending order were rated as the best states for business owners:
10. South Dakota
The state reported 100 business applications per 100,000 residents and saw an 8% increase in applications last year.
9. Kentucky
The state reported 107 applications per 100,000 residents and had a 21% increase in applications last year.
8. Kansas
The state reported 102 applications per 100,000 residents and saw a 20% increase in applications.
7. Oklahoma
According to the law firm, Oklahoma saw only 21% of businesses fail within one year as of March 2022. The national average was 22.17%. "Oklahoma has also seen a 6% rise in annual GDP, 26% higher than the national average," the law firm said.
6. Oregon
"The state had 123 business applications per 100,000 people between March 2022 and 2023, a 28% change from the previous year," Schmidt & Clark said.
5. Pennsylvania
"Pennsylvania saw a 33% rise in annual business applications between November 2022 and 2023, 213% higher than the national average and the second highest out of the top 10 states to start a business," the report said.
4. California
"California also has the lowest rate of business failures within one year at 13%, 41% lower than the national average."
3. Texas
"The number of business applications in the state rose 24% between November 2022 and 2023," Schmidt & Clark said. "Texas has also seen an 8% GDP rise in the third quarter of 2023, 68% higher than the national average."
2. Nevada
"In the state, the annual change of GDP was 7% in the third quarter of 2023, 47% higher than the national average," the report said. "Also, only 19% of the state’s businesses failed within one year, meaning businesses are 16.6% more likely to succeed in Nevada."
1. Wyoming
"The state had 907 business applications between November 2022 and 2023, 39% higher than the previous year, more than any other state, and 517% higher than the national average," the report said. "There was also a 6% change in GDP in the third quarter of 2023, which is 26% higher than the national average."
