The 10 Best States to Start a Small Business A new survey examines state and city governments are the friendliest to growing companies.
By Nina Zipkin
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There are many variables that can help determine whether your business has a chance at success: the state of the market, your competition, the way you build your team and the way you message your product, just to name a few. But another factor that should be considered by anyone starting a company is the kind of guidance you receive from your state and city governments.
A recent survey of nearly 18,000 U.S. business owners showed that, among all of the things that make a state or city "small-business friendly," offering training on business development was the most important factor to businesses. Conducted by professional marketplace Thumbtack, the survey found that governments that provide classes and training to help get entrepreneurs acquainted with local economic and policy rules, and lay out those requirements in easy-to-navigate steps on their websites, got the highest rankings.
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Licensing, labor and tax regulations were also among the key drivers of perceived business friendliness.
The survey, now in its fourth year, asked businesses to answer 36 questions related to everything from labor rules to licensing rules. While businesses in all 50 states were surveyed, only states with more than 50 responses and cities with more than 30 were given a small-business friendly grade.
For a look at the 10 best states to start a business, check out the slideshow below. To learn about the methodology behind the study, read more here.
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Texas
Overall grade: A+
Best: A+ for overall friendliness to small businesses
Worst: B for the ease of the hiring process
New Hampshire
Overall grade: A+
Best: A+ for the ease of launching a business
Worst: B- for environmental regulations
Utah
Overall grade: A+
Best: A+ for zoning regulations
Worst: B for the ease of launching a business
Louisiana
Overall grade: A
Best: A+ for employment, hiring and labor regulations
Worst: B for zoning regulations
Colorado
Overall grade: A
Best: A for overall friendliness to small businesses
Worst: C for health and safety regulations
Idaho
Overall grade: A
Best: A+ for networking and training programs
Worst: C- for ease of the hiring process
Tennessee
Overall grade: A
Best: A for overall friendliness to small businesses
Worst: F for networking and training programs
Virginia
Overall grade: A
Best: A for health and safety regulations
Worst: A- for networking and training programs
Georgia
Overall grade: A
Best: A for the ease of launching a business
Worst: C+ for networking and training programs
Kansas
Overall grade: A
Best: A+ for tax code
Worst: F for networking and training programs
