Not all places are created equal when it comes to supporting entrepreneurs. Which are the worst states for business in 2019?
This has been a momentous year for business. And it’s only July! Historic growth. Trade wars. Tech consolidation. But which are the worst states for business even in this wild bull market?
The worst states for business
American’s scenic New England shoreline has a fascinating history of corrupt politics and organized crime. Before that, the Brits loved it so much, they called it home. Literally.
However, according to CNBC’s new poll, it’s the worst state for business in the entire country.
All 50 states were ranked on 60 leading metrics in 10 categories and earn scores accordingly.
Rhode Island came in last with consistent problems and low rankings every year. State finances are out of balance. This shortfall has decayed the infrastructure, rated worst in the nation.
Points were deducted for high taxes too. Regulations are endless. Growth is unsurprisingly sluggish.
A battle is also brewing between the state government trying to raise funds with highway tolls and truckers furious they’ve been slapped with the bill.
There are some glimmers of hope, however. New businesses are coming, 30 now in 3 years. But this is a place with a deep history of organizational problems, so that doesn’t mean it should be yours.
The Aloha state doesn’t say hello to much new business.
This is just geography. It’s too expensive importing everyday materials. How can you run a small business when everything down to employee-bathroom supplies cost a premium?
This American Paradise also has poorly maintained roads and aggressive regulation.
Some of this is obviously intentional. Hawaii doesn’t intend on being the hot new market for growth. It has a permanent source of business: tourism. Locals are simply not interested in turning this natural wonder into condos.
The rest of the worst states for business
Mississippi, Alaska, Louisiana, and West Virginia round out the top 5 worst states for business. All these states are tied to the energy industry which is trending down.
Education is also a problem in rural states.
This ends up meaning not enough STEM workers and a lack of local innovation. Local talent leaves and is hard to recruit. Securing business financing is also a challenge in these areas.
Among a tally of underwhelming stats in these states, Alaska’s economy actually shrunk last year. The only state to do so. In this national economy. With cash advances this easy to secure? How?
Real estate brokers will tell you location is everything. This list of the worst states for business tells you that rule applies to everyone.