Washington Is the Best State for Entrepreneurs, West Virginia Is the Worst

Nov 02, 2015, 07:15 ET from GOBankingRates

LOS ANGELES, Nov. 2, 2015 /PRNewswire/ -- As two in five working Americans want to own their own business1, leading personal finance website GOBankingRates conducted a study to find out which U.S. states offer the best conditions for Americans wanting to start a business. The study found that while Washington, Wyoming and California are the best states for entrepreneurs, West Virginia, Hawaii and South Carolina are the least-friendly states for new business.

To see how well each state fosters new business, GOBankingRates' investigated the startup opportunities and existing small businesses in each state, along with how startup-friendly each state's business climate and economy is to determine the best and worst states for entrepreneurs for 2015. 

To see how each state ranks and read the complete survey findings, go to:

 "Any entrepreneur who has the flexibility to set up shop where he or she chooses should certainly consider doing so in one of the 10 states we found that help small businesses thrive," said Cameron Huddleston, GOBankingRates' Life + Money columnist. "There are plenty of factors in each of these states that boost the chances of success."

Additional insights include:

  • High Costs of Living: No. 2 worst state for entrepreneurs, Hawaii, has the highest cost of living in the nation and is burdened by high business taxes, making it difficult for new business owners to thrive.
  • Local Business Climate: Wyoming ranked as the No. 2 best state for entrepreneurs due to the its high per-capita GDP, availability of employees, and state small business loans, which all contribute to a healthy climate for new businesses.
  • Higher Education: California, Massachusetts and Delaware, all of which rank on the "best" list for entrepreneurs, boast higher college education metrics with greater percentages of students graduating from university.

Best States for Entrepreneurs:


Worst States for Entrepreneurs:


1. Washington

1. West Virginia

2. Wyoming

2. Hawaii

3. California

3. South Carolina

4. Colorado

4. Pennsylvania

5. Oregon

5. Virginia

6. Texas

6. Maryland

7. Delaware

7. Vermont

8. Massachusetts

8. Arkansas

9. Montana

9. Rhode Island

10. Missouri

10. Alabama

Methodology: GOBankingRates considered nine factors to rank all 50 states on the strength of existing small businesses and startups, as well as how favorable the state's business climate is for entrepreneurs. For full details on our approach, visit GOBankingRates.com.

About GOBankingRates

GOBankingRates.com is a leading portal for personal finance and consumer banking information, offering visitors the latest on everything from finding a good interest rate to strategies for saving money, investing for retirement and getting a loan. Its editors are regularly featured on top-tier media outlets, including U.S. News & World Report, Forbes, Business Insider, Daily Finance, Huffington Post and more. It specializes in connecting consumers with the best financial institutions and banking products nationwide.


Connie Lundegard, Media Relations
310-297-9233 x112

1 University of Phoenix, 2014. Half Of U.S. Working Adults Own Or Want To Own Their Own Businesses. http://www.phoenix.edu/news/releases/2014/08/university-of-phoenix-survey-finds-half-of-adults-want-own-business.html.

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SOURCE GOBankingRates