All over the country, millions of small business owners might be wondering just how conducive their local and state economies are when it comes to being good for their companies. Because of laws, regulations and other conditions in the market, some states happen to be better than others, and entrepreneurs who have designs on building their companies further might want to keep this fact in mind.
Texas is considered to be the No. 1 state in the country when it comes to helping businesses achieve success for the second year in a row, according to new data from the Chief Executive Group. Businesses in the Lone Star State are generally improving considerably, but saw the rate at which they generated new nonfarm jobs slip to No. 4 nationwide from No. 3 last year. Other factors to consider is that the Tax Foundation rates Texas as being the 11th-best state in terms of helping businesses, and its ALEC-Laffer Economic Outlook ranking came in at No. 12. Some of the reason that Texas isn’t even farther ahead of the rest of the pack is that climate conditions there aren’t as good as they could be, thanks to numerous droughts in recent years.
Other states in the top 10 were, for the most part, also located in the Southern U.S., the report said. Florida, Tennessee, and both North and South Carolina, respectively, rounded out the top five. Indiana, – the only northern state in the top 10 – was No. 6, followed by Arizona, Nevada, Louisiana, and Georgia. Meanwhile, the biggest mover on the list was Missouri, which jumped to No. 31 from No. 40 in just one year.
Which states are at the bottom of the list?
Meanwhile, it seems that many of the most populous states in the country, mostly cloistered in the Northeast, were considered to be the worst for business, the report said. While California was ranked last for the second straight year and Illinois was No. 48, other states at the bottom were New York (49), New Jersey (47), Massachusetts (46), and Connecticut (44).
Owners who are worried about their companies’ chances for success may want to do more to position them correctly, such as by making sure their expenses are as streamlined as possible. That could include taking the time find more affordable small business insurance coverage, such as liability insurance, to reduce costs by thousands of dollars per year.