Florida is a top state for startups, according to a new report.
The Sunshine State is ranked second in the Best States in the U.S. to launch a startup. It has an overall score of 69.75 out of 100.
The Comparisun website says, “Entrepreneurs looking to form the next big startup need to think carefully about where to start up their company, with lots of factors that could influence their chances of success.
Some states offer a better environment in which to try and grow a business, it states.
For the ranking, it compared each of the 50 US states on new business applications and year-on-year application growth. It also compared business survival rate, the rate of new entrepreneurs and corporate tax rate. The share of college-educated population, labor cost and cost of living were also taken into account.
Each was given score out of 100, before combining these ratings to reach a final weighted score out of 100.
The criteria taken into account
The criteria are:
New Business Applications – The number of new business applications made in the last four quarters, according to the United States Census Bureau.
New Business Applications Year on Year Growth – The year on year growth of new business applications made according to the United States Census Bureau.
Business Survival Rate – The percentage of businesses that opened in the year ending March 2013 which were still trading as of March 2018, according to the Bureau of Labor Statistics.
Rate of New Entrepreneurs – This is the percentage of the population who are “new business owners. It includes those who own incorporated or unincorporated businesses, and those who are employers or non-employers”, according to the Kauffman Indicators of Entrepreneurship.
Corporate Tax Rate – The lowest corporate tax rate according to the Tax Foundation. While some states may not levy a corporate tax, they may have similar taxes. These include a franchise tax or business & occupation tax. They may also apply further taxes at a local level.
Share of College-Educated Population. This is the share of the population aged 25 years or older who hold a Bachelor’s Degree or higher.
Labor Cost – The average income per capita.
Cost of Living Index – Cost of Living Index according to World Population Review (where 100 = the US national average).