Study Finds Texas to be Best State to Start a Business

When it comes to starting a business, it’s all about location.

In the book Rich Dad Poor Dad, author Robert Kiyosaki shares a story about McDonald’s owner Ray Kroc speaking to a friend’s MBA class at the University of Texas at Austin. After the ceremony Kroc was gracious enough to join members of the class for a few beers.

While speaking with the students, Kroc asked them what business they thought he was in. They thought he was joking and laughed at first, but eventually a student answered with, “hamburgers.”

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Kroc told them he wasn’t in the business of hamburgers, but instead was in the business of real estate. His point was that the location where his restaurants were built was the most important part of owning a business.

So, with that being said, I’m pleased to report that a recent study conducted by the financial website WalletHub found Texas to be the best state to start a business.

What methodology did researchers use for their findings?

Researchers used 28 key indicators like labor costs, availability of human capital and industry variety to reach their conclusions.

The study has Texas ranked 2nd in business environment, 12th in access to resources and 32nd in business costs.

Top 10 Best States to Start a Business

1. Texas
2. Georgia
3. California
4. Florida
5. Idaho
6. Utah
7. Colorado
8. North Dakota
9. North Carolina
10. Massachusetts

Remember, even though Texas is a great state to start a business, nearly half of new businesses don’t make it more than five years. So, be careful if you’re thinking about trying your hand at starting a new business.