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Vermont: 2018’s 4th worst state to start a business

Submitted by tim on

Vermont Business Magazine A national data firm has determined that Vermont is the fourth worst place in the nation to start a business. Even worse than Vermont are Rhode Island, New Hampshire and Hawaii. Texas finished first. Vermont has a relatively high cost of living andlow availability of human capital.Surprisingly, Vermont was thrid highest in business incentives as percentage of GDP. But at the end of the day, Vermont was 49th in the average growth in number of small businesses.

The firm, WalletHub, reports that according to USBureau of Labor Statisticsdata, about a fifth of all startups typically don’t survive past year one of operation, and nearly half never make it to their fifth anniversary.For the full report, click HERE.

Starting a Business in Vermont (1=Best; 25=Avg.):

  • 49th– Avg. Growth in Number of Small Businesses
  • 17th– Office-Space Affordability
  • 31st– Labor Costs
  • 44th– Availability of Human Capital
  • 45th– Avg. Length of Work Week (in Hours)
  • 40th– Cost of Living
  • 38th– Industry Variety

But startups fail for different reasons, a “bad location” among themost common. Choosing the right state for a business is therefore crucial to its success. A state that provides the ideal conditions for business creation — access to cash, skilled workers and affordable office space, for instance — can help new ventures not only take off but also thrive.

In this study, WalletHub compared the 50 states across 25 key indicators of startup success to determine the most fertile grounds in which to launch and grow an enterprise. Read on for our findings, business insight from a panel of experts and a full description of our methodology.

Best States to Start a Business

Overall Rank
(1=Best)

State

Total Score

‘Business Environment’ Rank

‘Access to Resources’ Rank

‘Business Costs’ Rank
1 Texas 64.40 1 12 16
2 Utah 63.41 3 1 33
3 Georgia 60.21 7 15 17
4 Montana 58.90 8 14 8
5 Oklahoma 58.67 11 25 1
6 Florida 58.09 5 21 25
7 North Dakota 57.94 4 20 31
8 California 57.61 2 6 47
9 Arizona 55.58 10 19 23
10 Colorado 55.43 6 24 32
11 Nevada 53.44 9 30 29
12 North Carolina 53.26 20 17 14
13 Washington 52.55 15 2 41
14 Idaho 52.19 14 46 7
15 Michigan 51.86 28 36 3
16 South Dakota 51.59 32 29 6
17 Wyoming 51.39 17 26 26
18 Louisiana 50.91 27 23 15
19 Massachusetts 50.84 16 5 44
20 Nebraska 50.61 26 32 10
21 Mississippi 50.47 44 28 2
22 Kentucky 49.67 38 42 5
23 Oregon 49.60 13 27 36
24 Missouri 49.54 24 33 20
25 South Carolina 49.49 31 39 13
26 Arkansas 49.47 37 35 11
27 Minnesota 49.29 21 10 39
28 Illinois 49.04 34 7 38
29 New Mexico 48.79 43 18 19
30 Tennessee 48.31 35 45 12
31 Maine 48.19 30 40 22
32 New York 48.02 18 3 49
33 Indiana 47.87 25 47 18
34 Virginia 47.63 19 31 34
35 Kansas 47.54 41 37 21
36 Alaska 47.26 12 16 48
37 Delaware 47.17 22 13 42
38 Ohio 46.63 39 43 24
39 Iowa 46.38 33 34 30
40 Wisconsin 46.17 36 44 28
41 Alabama 45.90 48 41 9
42 Maryland 45.85 29 8 45
43 Connecticut 45.05 42 4 46
44 New Jersey 44.00 23 9 50
45 West Virginia 43.60 50 38 4
46 Pennsylvania 42.81 47 22 37
47 Vermont 42.53 46 49 27
48 Rhode Island 41.88 49 11 35
49 New Hampshire 38.11 45 48 40
50 Hawaii 37.16 40 50 43

Source: Jul 2, 2018 WalletHub