Starting a business is never easy — according to U.S. Bureau of Labor Statistics data, about a fifth of all startups typically don’t survive past year one of operation, and nearly half never make it to their fifth anniversary — but it may be especially difficult in Alabama.
On Monday, personal finance site WalletHub ranked Alabama as the 10th worst state in its “2018’s Best & Worst States to Start a Business” report. The site compiled its list in effort to determine the most fertile grounds for planting and growing new ventures. A state that provides the ideal conditions for business creation — access to cash, skilled workers and affordable office space, for instance — can help new ventures not only take off but also thrive.
WalletHub analysts 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.
Starting a business in Alabama (1= best; 25= avg.):
- 44th: Avg. growth in number of small businesses
- 18th: Office-space affordability
- 24th: Availability of human capital
- 47th: Industry variety
- 47th: Startups per capita
The states that ranked worse than Alabama include Connecticut, Maryland, New Jersey, West Virginia, Pennsylvania, Vermont, Rhode Island, New Hampshire and Hawaii.
The best states to start a business include Texas, Utah and and nearby Georgia and Florida.
Here’s how Alabama compares to the rest of the country: