When it comes to small businesses, many owners who are just starting out may not think that some parts of the country may be more conducive than others when it comes to fostering growth and success, but that is often the case. As such, it might be wise for them to consider their next moves with regard to how much their home states are likely to help them best position themselves for future returns.
Texas was once again the No. 1 state in which to start and continually operate a small business across the entire U.S., earning an overall A-plus grade across a number of different areas that could be conducive to growth, according to a new survey from Thumbtack. In fact, across 11 different measures, Texas earned an A-Plus rating in eight of them, with only “ease of hiring,” “licensing,” and “training and networking programs” falling short. Nonetheless, those three factors were still rated with an A. Four other states – Idaho, Utah, Virginia, and South Carolina – also earned A-plus ratings, but didn’t have as many individual A-pluses to pull ahead of Texas.
“Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, but rarely does anyone ask small business owners themselves about what makes for a pro-entrepreneur environment,” said Jon Lieber, chief economist of Thumbtack. “Thousands of small business owners across the country told us that the keys to a pro-growth environment are ease of compliance with tax and regulatory systems and helpful training programs.”
What about states that could be more troubling?
On the opposite end of the spectrum, there were only three states that earned F ratings in the survey, the report said. Connecticut, Rhode Island, and California all presented the most difficulties for owners, but Rhode Island was the toughest place to succeed. In all, its best rating – for its training and networking programs – only came to a C-minus. Both Connecticut and California had at least one area of success rated in the B or B-minus range.
Owners who want to best position their companies to succeed might also want to think about what they’re doing internally to make sure everything is as streamlined as possible. That could include cutting costs by finding more affordable small business insurance policies – such as liability insurance – which could end up saving them thousands annually.