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Ohio cited as third-best state for startups
BRANDON KLEIN
Special to the Legal News
Published: December 3, 2019
Ohio ranked as the third-best state for startup companies, according to a recent report from Comparisun, an international team of entrepreneurs who provide online comparisons of different products for business owners.
The report's analysis is based on the state's business survival rates, business application growth, rate of new entrepreneurs, tax rates, education, labour costs and the cost of living.
"Around the U.S. there are definitely some states which offer a better environment in which to try and grow a business, so we've conducted the following analysis to try and find which are the best states to launch a startup," the report stated.
Ohio had 92,112 new business applications for the last four quarters, a nearly half percent increase from the previous year.
More than 53 percent of businesses that opened for the year ending in March 2013 were still operating in March 2018. And 0.22 percent of Ohio's population were new entrepreneurs, or first-time business owners.
Additionally, the report noted that Ohio has no corporate tax rate and that nearly 28 percent of the population are college educated.
It noted that the average labor costs were $26,778 per capita and that its costs of living were nearly the same as the national average.
Comparisun used data the U.S. Census Bureau, the Bureau of Labor Statistics, the Kauffman Indicators of Entrepreneurship and the Tax Foundation for its comparison. States were graded on a 100-point scale.
"Entrepreneurs looking to form the next big startup need to think carefully about where to start up their company, with lots of factors that could influence their chances of success," the report stated.
Texas and Florida ranked as the top states, respectively, for startups. Following Ohio were Colorado, Arizona, Utah, California, North Carolina, Georgia and Oklahoma.
Rhode Island was ranked as the worst state for startups, followed by Delaware, West Virginia, New Hampshire, Hawaii, Nebraska, North Dakota, Connecticut, Vermont and Kentucky.
Ohio would be the top state in the Midwest region with North Dakota and Nebraska on the other end of the rankings.
Michigan would rank second in the region and 11th overall, followed by South Dakota (15th), Wisconsin (17th), Indiana (19th), Missouri (23rd), Minnesota (26th), Kansas (28th), Illinois (32nd) and Iowa (35th).
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