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.
Find out how West Virginia stacks up in other studies:
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Here are the top 10 worst states to start a business, according to WalletHub:
- Rhode Island
- New Jersey
- New Hampshire
- New York
- West Virginia
And here are the top 10 best states to start a business, according to WalletHub:
- North Dakota
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.