Idaho is among top 10 states to start a business in US, study says. Here’s why

BOISE (Idaho Statesman) – Have a new business idea you are itching to get started? Idaho may be one of the best options for those looking to setup a new venture, according to a WalletHub news release. The state holds status among the top ten in the country for startups.

Coming in at no. 5, Idaho shows “a strong mix of growth and affordability that makes it an attractive place to start a business,” Chip Lupo, a WalletHub writer and analyst, said in an email to the Statesman.

Why did Idaho place fifth?

According to Lupo, Idaho’s business potential shines brightest in its growth in both its small-businesses and in its working-age population. Placing first in both of these categories shows “that both demand and the labor supply are expanding quickly,” Lupo said.

In addition to these first place rankings, Lupo said Idaho placed fourth in startups per capita, third in GDP growth and sixth in job growth. He said these high scores shows Idaho’s “healthy and growing economy.”

Alongside its growth, Idaho’s affordability was also a key contributor to its place. According to Lupo, affordable employee health insurance and office spaces “help keep operating expenses manageable, giving new businesses room to grow.”

What should you consider when choosing to start a new business in Idaho?

Lupo said even though Idaho was a top contender in economic growth and affordability, the state received one of the worst scores for business survival, placing 47th in the nation.

He added that industry variety is very limited in Idaho as well “which can make long-term stability harder for some startups.” Idaho placed 44th in this category.

“The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate,” said Lupo in a quote for the WalletHub news release.

One resource for potential business owners in Idaho is the Idaho Small Business Development Center, an organization that “empowers small business success by providing no-cost, confidential consulting and low-cost training to entrepreneurs throughout Idaho,” the center said on its website.

Can Idaho be better for small business owners?

In order to climb to the top of WalletHub’s study on best and worst states to start a business, Idaho and its business ventures may need to take some notes from its top competitors on securing better business longevitiy.

WalletHub’s top 10 states to start a business:

1. Florida

2. Utah

3. Texas

4. Oklahoma

5. Idaho

6. Mississippi

7. Georgia

8. Indiana

9. Nevada

10. California

“Florida has retained the third-highest percentage of workers who say they are enthusiastic about and committed to their work,” said the WalletHub news release.

This level of commitment may be related “many reasons,” but the release specifies “that it has the 15th-lowest corporate taxes,” as a factor.

“Utah is the second-best state for starting a business, in large part because it’s the second-easiest state for securing financing for business loans,” it said. “Having the necessary capital makes it much easier for a business to get off the ground.”

Texas scored in the top 10 for strong business clusters, highly successful “interconnected businesses that specialize in the same field,” according to WalletHub. Utilizing these strong clusters allow businesses to have “an easier time getting the materials they need,” even amongst competition.