TAMPA, Fla. (WFLA) — Florida was ranked second among the best states to start a business in a report by WalletHub.
According to the personal finance website, about 1 out of 5 new businesses fail after their first year, and half of them fail to stay open by the five-year mark.
With this in mind, WalletHub took a look at which states were friendlier to startup businesses amid the fallout of the COVID-19 pandemic and rising costs due to inflation.
The study figured out which states were the best using 27 metrics focused on three main areas: business environment, access to resources, and business costs. The metrics were used to calculate a score of zero to 100, with 100 showing the most favorable conditions to start a business.
Utah was the top state with a composite score of 59.91, with Florida following close behind with a score of 59.21. However, Florida did have the best business environment in the nation, followed by California.
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WalletHub also found in terms of average growth in the number of small businesses, Florida ranked fourth in the nation.
You can read more about the study’s methodology here.