CHARLOTTE, N.C. - The Tar Heel State has been named the best state in the country to start a business by a new ranking from FitSmallBusiness.com. North Carolina topped the list because of its strong showing in terms of taxes and labor market, according to the ranking.
According to FitSmallBusiness, “The state has high rankings in corporate and unemployment insurance taxes. Its labor market is flourishing as the state grabbed the 6th spot in location desirability.”
Also among the top states for startups were Utah, Texas, Indiana, and Montana. All of the top five were rated especially high in taxes and cost of living.
As for best city within the state to start a business, Raleigh edged Charlotte because of the resources and academics in the Research Triangle.
To create the ranking, the website analyzed data from sources such as the Bureau of Labor Statistics, the Missouri Economic Research and Information Center, and the Small Business Administration.
With each state, the ranking chose seven categories that significantly influence an entrepreneur’s chances for survival and success:
Access to Capital – Venture capital and small business loans
Startup Activity – Rate of new entrepreneurs and survivability of business
Taxes – Corporate tax, individual income tax, sales tax, unemployment insurance tax, and property tax
Cost of Living – Grocery, housing, utilities, transportation, and health
Labor Market – Location desirability, and bachelor degree attainment
Quality of Life – Access to healthcare, education, and physical safety
Cost of Starting a Business – Per capita income and commercial rent
Overall, North Carolina ranked in the top 20 states in four of the categories measured.
"External job seekers are likely lured to the state by thriving businesses, a great sign for would-be entrepreneurs," said the article after declaring North Carolina number one.
The state's rival neighbor to the south, however, landed third from the bottom in 48th place. South Carolina only out-ranked New Mexico and Rhode Island for starting a business.