Small businesses everywhere are trying to find the best place to break onto the scene. The answer as to where, however, is not as simple as many think. This year alone Forbes, CNBC, and Thumbtack have released detailed lists of the best states for growing a business, but their lists differ in some small and large ways.
According to Nina Zipkin of Entrepreneur, “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.” For each list of the best business states, the weight and gravity of certain elements that make for small business growth differ.
Differences aside, there are a few states that dominate the top ten lists for small business. They are:
- Texas (4)
- Utah (3)
- Tennessee (3)
- Colorado (3)
- Virginia (3)
- Georgia (3)
- Louisiana (2)
- New Hampshire (2)
- North Carolina (2)
Texas is the only state that shows up on just about every list of the top states for small businesses. The obvious question, then, is: why Texas? Here are a few reasons why Texas is a a favorite for small business owners:
- Texas offers an easy licensing process and robust zoning laws
- The economy is largely deregulated
- Texas workers are highly skilled
- You’re not required to pay state income tax
- Economists forecast significant growth prospects
Each of these elements combine to foster an environment that is intensely supportive of small business. While many other states share varying combinations of these traits, specifically those who appear three times on various lists, none have a power combo as impressive as Texas.
For business owners, however, considerations of where to start a business are considerably varied. While most lists look at general business conditions, many don’t give ample data to show whether the market of a particular state is best suited for a specific small business product.
Thus, lists like these should be taken as a starting point for people embarking on a small business venture. From here, it’s necessary for all savvy entrepreneurs to make sure the local market is a good fit for their products and services.