Texas is the best state in the U.S. to start a new business. That's according to consumer finance website Wallethub, which on Monday released its "2019’s Best & Worst States to Start a Business."
"Texas has a healthy business environment, as demonstrated by the long work weeks, large share of engaged workers, an almost 11 percent growth in the number of small businesses, and a 36 percent growth of average business revenues," Wallethub analyst Jill Gonzalez told The Center Square. "Plus, the state has high employment specialization, and a high rate of new entrepreneurs."
A state that provides the ideal conditions for business creation – such as access to cash, skilled workers and affordable office space – can help business start-ups thrive, Wallethub says.
To come up with its ranking, WalletHub compared the 50 states across 26 key indicators of startup success, including main categories ranking each state's business environment (where Texas finished first), access to resources (11th), and business costs (30th).
Texas's high rankings in several categories "contribute to a considerable growth in the state's GDP, at more than 3 percent," Gonzalez said. "Other factors that contributed to the state topping the ranking include the third highest growth in working age population, almost 10 percent, and the large amounts spent on incentive programs."
But even the state ranked best in the nation for business startups has room for improvement.
"Business costs represent the area where Texas would most benefit from improvement," Gonzalez said. "In particular, corporate taxes are among the highest here."
Texas was followed by Utah in second and Georgia in third. North Dakota and Oklahoma round out the top 5.
Rhode Island finished at the bottom in 50th.