West Virginia in the top 10 worst states to start a business

West Virginia

CLARKSBURG, W.Va. – A study by WalletHub.com ranked West Virginia as the 10th worst state to start a business. However, they ranked West Virginia third in the country for its low business costs. The site compared all 50 states according to 26 indicators of start-up success, including financing accessibility, office space affordability, and labor costs.

Source: WalletHub

Find out how West Virginia stacks up in other studies:
Study names West Virginia 2019’s Worst State for Millennials
West Virginia named 4th least selfie-obsessed state
West Virginia has the 5th worst economy, according to study

Here are the top 10 worst states to start a business, according to WalletHub:

  1. Rhode Island
  2. New Jersey
  3. New Hampshire
  4. Hawaii
  5. Connecticut
  6. Pennsylvania
  7. Delaware
  8. Vermont
  9. New York
  10. West Virginia

And here are the top 10 best states to start a business, according to WalletHub:

  1. Texas
  2. Utah
  3. Georgia
  4. North Dakota
  5. Oklahoma
  6. Florida
  7. Arizona
  8. California
  9. Montana
  10. Colorado

One of the reasons West Virginia is toward the bottom of the list is that it has the lowest share of college-educated population at 20 percent. On the other end, Massachusetts has the highest share with 42 percent. Another reason is that West Virginia had the fewest startups per 100,000 residents–70. North Dakota has the most with 199.

West Virginia also has the lowest average growth in number of small businesses and is the least educated, according to the study.

On the other hand, West Virginia has the third lowest labor cost and the second highest availability of human capital (number of job openings compared to the number of people in the labor force, minus the unemployment rate), as well as being tied with Michigan on having the highest total spending on incentives as a percentage of the GDP, according to WalletHub.

Click here to find more information on the study >>

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