Here’s something big for Lone Star Staters to brag about: Texas ranks number one as the best place to start a small business.
For the eighth consecutive year, Texas was rated as the top state for businesses, according to Chief Magazine’s annual Best & Worst States Survey. Among the factors that gave the state an A+ score are the easiness of starting a new business, hiring costs, government regulations, and training programs.
Quality of education, quality of living, the warm climate and workforce equality were also factors used in ranking the best states for small businesses.
“Local economic development corporations, as well as the state Texas Enterprise Fund, are providing attractive incentives,” J.P. Donlon, editor-in-chief of Chief Executive magazine and ChiefExecutive.net, said. “This, along with the relaxed regulatory environment and supportive State Department of Commerce, adds up to a favorable climate for business.”
Other states that landed an A+ grade were Idaho, Oklahoma and Utah, for friendliness, low tax rates, and other perks.
Globalization has made it possible for entrepreneurs to serve clients in not only their local community, but the entire world. If you’re looking to start a small business, Texas might be a good place to start. The Lone Star State has the most globe-focused manufacturing sector in the country, with export sales at $69,268 per worker—the highest of any state. Other incentives for business owners is the cost of labor—Texas has the lowest workers’ compensation costs of any state – and there’s no capital gain tax.
“Although Texas and Idaho clearly come out on top as the nation’s friendliest states towards small business, entrepreneurs value a lot more than just low tax rates,” said Sander Daniels, co-founder of Thumbtack.com. “Easy-to-understand licensing regulations and well-publicized training programs are critical tools necessary to support small business.”