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The Best States for Small Businesses in 2022

The Best States for Small Businesses in 2022

The annual survey looks at business policies across the United States to find the best state for small businesses.

  • Studies show that location is important when starting or running a small business.
  • Pushpins conducted an annual survey of small business owners during the COVID-19 outbreak, and the results reflected a unique confusion.
  • Motley Fool analysts also ranked the best states for SMBs based on financial conditions, consumer spending, new entrepreneurship, business survival, labor costs, and the impact of climate change on businesses.
  • This article is aimed at up-and-coming entrepreneurs, small business owners, and others looking for the best state to start a store.– If you have a small or medium-sized business (SME), several key factors can immediately affect its success. One of the most important decisions a start-up SME owner can make is where to start the store. Location matters – and studies show that location can determine how easy it is to start your own business.

We look at the results of the annual Thumbtack Small Business Friendship Survey as well as Motley Fool’s analysis of how key factors affect business success in different states.

Annual Small Business Friendship Survey

In its latest Small Business Friendship Survey, Thumbtack polled more than 3,600 small and medium-sized businesses across the country to determine how easy or difficult it is to start and run a business in their states and cities. . Participants answered more than 40 questions on topics such as local tax codes, licensing regulations and worker facilities.

Since Thumbtack conducted the survey in 2021 amid widespread challenges, the results differed significantly from the 2019 survey. According to Andrew Heritage, Thumbtack’s chief economist, in 2019 the economy was “in the midst of the longest period of development. economic in the history of Thumbtack the United States “. As Heritage noted, “the entrepreneurs of 2021 were far from one of the shortest and most severe economic recessions in modern history.”

The SME challenges associated with the outbreak will affect nearly all aspects of running a business in 2021. The Thumbtack survey shows frustration and a willingness to support entrepreneurs, but also optimism. “Our investigation revealed that CACT-19 discovered the suspension of the challenges to small businesses and SME owners are looking for local, state and federal governments to provide additional support to local, state and federal governments. . ” Heritage said. “If the respondent state is 54%, a federal government wants to reduce or simplify taxes, and 41% want to make local government more expensive.”

One of the reasons why the trend-induced challenge will be destroyed. “The Kovid-19 Public Health Crisis is the reason for the current economic illusion and heritage declared:” Once resolved, the challenge, such as the tribe of work, inflation and confusion of the chain of ‘Supply should be reduced. ,

There are signs to return to business climate. The figures of the business training of the population agency show that entrepreneurship is at the highest price.

Though Thumbtack’s survey respondents faced significant disruptions, they are also optimistic: 87% of respondents believe there’s enough economic opportunity in their communities to succeed, up 11% from the previous survey. They are so optimistic, in fact, that 42% are making plans to invest in their business in the first quarter of 2022.

Thumbtack’s best and worst states

The most recent Thumbtack survey’s best- and worst-ranked states differed significantly from the 2019 survey. The results reflect each area’s temporary pandemic regulations more than their support for small businesses in general.

According to the Thumbtack survey, here are the top friendliest states for small businesses:

  • Maine (A+)
  • New Hampshire (A+)
  • South Carolina (A+)
  • Florida (A)
  • Georgia (A-)
  • Kentucky (A-)
  • Maryland (A-)
  • Arkansas (B+)
  • Hawaii (B)
  • Texas (B)
  • Washington (B)

Here are the top SMB-friendly cities:

  • Jacksonville, Florida (A+)
  • Salt Lake City, Utah (A+)
  • Baltimore, Maryland (A)
  • Orlando, Florida (A)
  • Dallas, Texas (A-)
  • Fort Lauderdale, Florida (A-)
  • Seattle, Washington (A-)
  • West Palm Beach, Florida (A-)
  • Atlanta, Georgia (B+)
  • Houston, Texas (B)
  • New York, New York (B)

These are the worst states in terms of SMB friendliness:

  • Indiana (D+)
  • Kansas (D+)
  • Mississippi (D+)
  • Illinois (D+)
  • Colorado (D+)
  • Missouri (D)
  • Wisconsin (D)
  • Iowa (D)
  • Delaware (D)
  • Pennsylvania (F)
  • Oregon (F)
  • Minnesota (F)
  • Michigan (F)

These are the bottom cities for small businesses:

  • Providence, Rhode Island (D+)
  • New Orleans, Louisiana (D+)
  • Las Vegas, Nevada (D+)
  • San Antonio, Texas (D)
  • Portland, Oregon (D)
  • Minneapolis, Minnesota (D)
  • Nashville, Tennessee (F)
  • Kansas City, Kansas (F)
  • Detroit, Michigan (F)

The Motley Fool’s state rankings

While the Thumbtack survey asked small business owners their opinions on their states’ and communities’ friendliness, The Motley Fool’s analysis approached the question differently. Analysts have considered multiple surveys by government agencies and nonprofits in each state based on six factors: financial situation, personal consumption, new entrepreneurship, corporate survival, labor costs, and the impact of climate change. Assigned a score.

The Motley Fool has compiled the following rankings for the top 10 SME states:

  1. Montana: Montana has excellent new entrepreneurship rates, good business survival rates, relatively low labor costs, and a negligible impact on climate change. However, personal consumption is weak.
  2. South Dakota: South Dakota has good taxation, relatively low labor costs, high business survival, and low climate change impact. However, there are not many new entrepreneurs and consumer spending is low.
  3. Florida: Florida has a great rate of new entrepreneurs and a good financial climate, but its business survival rate is poor and the state is at increased risk of climate change.
  4. Texas: Texas has reported higher rates of new entrepreneurs, better business viability and less risk of climate-related disasters. However, there are high taxes and relatively high labor costs.
  5. Idaho: Idaho is not severely vulnerable to climate change, and consumer costs, start-up rates, survival rates, and labor costs are all good. More than 9% of the clocked status and local taxes are one of the disadvantages.
  6. Utah: Utah (Utah) achieved consumer spending 10 in the effect of consumer spending and climate change in the effect of 9.49. Tax climate and business survival are atmospheric, but the speed of new entrepreneurs and labor costs is very low.
  7. Arizona: Arizona has a minimal impact on climate change and relatively high business openness, and the tax rate and business survival rate are on a lower page.
  8. Oregon: Oregon has a lot of new companies, but people with open people have a good opportunity to survive. These companies are less vulnerable to climate change and moderate labor costs.The biggest drawback here is the high taxes, which are over 10% state and local.
  9. Wyoming: Wyoming had no corporate and individual income tax, and a 5.34% excise tax, giving it an excellent tax score. There are not many problems with climate change. However, the rates of individual consumption and corporate survival are very low.
  10. Nevada: There are many new job opportunities in Nevada but the survival rate is below average. Businesses are adequately protected from climate change and consumer spending is low. There is no corporate or income tax, but sales tax is slightly higher at 8.23%.

overall results

Both analyzes agree that Florida and Texas are favorable environments for starting a business. If you are thinking of starting a new business and need a location, consider these factors and decide which is most important to you. For example, if you are a self-employed person and have a sole proprietorship or a consulting firm, labor costs may not matter.

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