RI Ranked As Worst State to Start a Business
GoLocalProv Business Team
RI Ranked As Worst State to Start a Business
"Over one-fifth of all startups typically don’t survive past year one of operation, according to the U.S. Bureau of Labor Statistics, and nearly half never reach their fifth anniversary. Staying afloat is challenging even in stable times—and even more so amid elevated inflation and persistent labor market tightness,” according to WalletHub.
"Beyond these macroeconomic headwinds, there are many other common reasons startups fail, and a 'bad location' remains one of the top ones. Choosing the right state for a business is therefore crucial. A state that offers the right ecosystem—access to capital, skilled talent, affordable real estate, for instance—can give new ventures a leg up not just to start, but to scale," they continue.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTDan McKee was supposed to be the "small business" governor, but after nearly five years in office, Rhode Island's small business environment could not be worse.
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.
Rhode Island is ranked last in the new WalletHub study.
“Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living. That’s why it’s crucial to establish your business in a state that will maximize your chances of success. The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally,” said Chip Lupo, WalletHub analyst.