If you have a new small or medium-sized business (SME), there are several key points that can have an effect on your success. One of the most important decisions a young small business owner can make is where to settle. Location issues: And studies show that location can determine how simple it is to launch your business.
We’ll explore the effects of Thumbtack’s annual Small Business Friendship Survey, as well as research from the Motley Fool on how pain points can drive good fortune in businesses in other states.
Tip: No matter what state you operate in, be sure to familiarize yourself with federal and state legislation on hard work and compliance requirements.
In its most recent Small Business Friendliness Survey, Thumbtack surveyed more than 3,600 small business owners across the country about how simple or complicated it is for them to start and run a business in their home states and cities. Participants answered more than 40 questions on topics such as local tax codes, licensing regulations, and ease of locating workers.
Given that Thumbtack responded to this survey in 2021 amid the demanding situations of the pandemic, the effects differed particularly from its 2019 survey. In 2019, the economy “in the midst of the longest era of economic expansion in U. S. history. “”U. S. ,” according to Andrew Heritage, lead economist at Thumbtack. As Heritage noted, “Business owners in 2021 were one year away from one of the shortest but steepest economic declines in fashion history. “
Know? The states for small business taxes are Wyoming, South Dakota and Alaska. The worst states are New York, New Jersey and California.
The demanding situations of SMEs similar to the pandemic affected almost each and every facet of the management of a company in 2021. The Thumbtack survey reflects the frustration and supportive preference of business owners, but also their optimism.
“Our research found that disruptions caused by COVID-19 are posing demanding situations for small business homeowners, and small business homeowners should ask local, state and federal government for more support,” Heritage said. [Of those surveyed,] 54% need state government to simplify regulatory and licensing requirements, 45% need the federal government to reduce or simplify taxes, and 41% need their local government to make housing more affordable. “
There is an explanation for why expect the demanding situations brought about by the pandemic to dissipate. “Fundamentally, the public fitness crisis caused by COVID-19 is the cause of the existing economic disruption,” Heritage said. “Once resolved, demanding situations such as as as shortages of hard work, inflation and supply chain disruptions are expected to subside. “
There are symptoms that the weather is recovering. Census Bureau training statistics show that entrepreneurship is at an all-time high.
While respondents to the Thumbtack survey have faced significant disruption, they are also optimistic: 87% of respondents believe there are enough economic opportunities in their communities to succeed, up 11% from the previous survey. They are so optimistic, in fact, that 42% plan to invest in their business in the first quarter of 2022.
Know? Business incubators are economic systems that foster the good fortune of new companies through the offer of work areas and professional services and advice.
The states with the highest and lowest rankings in Thumbtack’s most recent survey differed particularly from the 2019 survey. The effects reflect each region’s transient pandemic regulations more than those of small businesses in general.
Know? Your industry and product can determine how favorable a specific domain is to your business. For example, a fishing charter company can be a successful business in Florida, while a music production company deserves to start in Nashville.
While Thumbtack’s survey asked small business owners their opinion on the friendliness of their states and communities, The Motley Fool’s research approached the factor differently.
The analysts reviewed several studies conducted through government entities and nonprofits to assign the state a score based on six factors: fiscal climate, customer spending, new entrepreneur rate, business survival rate, hard work costs and the effect of climate change.
The Motley Fool has established the following ranking of the 10 most sensitive states for small businesses.
Know? The states with the fastest-developing small ones are Mississippi, Nebraska, Maine and Texas.
Both analyses agree that Florida and Texas are favorable environments for business creation. If you are about to open a new business and want a location, find out what are the most important points for you. For example, if you are self-employed and open a sole proprietorship or consulting firm, hard labor costs may not be crucial.
When choosing where to open a business, also think about where you would like to live and prepare for retirement.
Jennifer Dublino contributed to the writing and presentation of this article.