Texas declared the No. 1 state to start a business by new study
The entrepreneurial spirit is best cultivated by Texans, apparently. The Lone Star State comes in first place for being business-friendly to startups and their founders in a new study.
Out of all 50 states, Texas reigns supreme in WalletHub's report of the best and worst states to start a business for 2019. Texas earns a score of 61.05, which factored in business environment, access to resources, and business costs. Of those factors, the state ranked No. 1 for business environment, No. 11 for access to resources, and No. 30 for business costs.
Zeroing in on some key factors, Texas was recognized for having the fourth highest average growth in small businesses and the fifth highest total spending on incentives as its percent of gross domestic product. Texas also has the fourth longest work week by hours.
Texas edged out No. 2 Utah by a mere 0.1 points. The rest of the top five includes Georgia, North Dakota, and Oklahoma, respectively. At the bottom of the rankings are Connecticut, Hawaii, New Hampshire, New Jersey, and Rhode Island.
San Antonio recently received a similar distinction from the personal finance site. In May, WalletHub used 19 key metrics — such as five-year business-survival rate and office-space affordability — to name San Antonio the No. 16 best city for starting a business out of 100 of the largest U.S. metros. In that study, a total of seven Texas cities made the top 20.
Texas also has a favorable business climate for female entrepreneurs in particular, one study found. Texas moved up to No. 1 from No. 8 in 2018 in this report by Fit Small Business that published in January.
Meanwhile, while known for being best for business, Texas is far from the top ranking in a study that analyzed the states' overall capacity. Texas came in at No. 38 in this recent U.S. News & World Report's best states rankings for 2019, but even this report recognized Texas' business climate.
"Texas' diverse industrial base has drawn many businesses and workers in recent decades because of light regulation, low taxes and a low cost of labor," U.S. News says. "Entrepreneurs are particularly attracted to Austin, which emerged as a major player in the technology industry in the 1990s. Its 'South by Southwest' is one of the preeminent national tech conferences."
A version of this originally appeared on InnovationMap.com.