Forbes Advisor Ranks Louisiana 37th Best State to Start a Business in 2023
Forbes Advisor recently released its latest ranking of the best states to start a business in 2023, and Louisiana came in at number 37. The ranking analyzed 18 key metrics to determine the rankings, including business costs, business climate, financial accessibility, economy, and workforce. Louisiana received low scores in several categories, including workforce, business climate, and economy, placing it behind many other Southern states.
Louisiana's workforce received a low score due to its low educational attainment and lack of diversity. The state's business climate was deemed unfavorable due to high regulatory burdens and a relatively small number of new business startups. The state's economy also received a low score due to a sluggish job growth rate and low GDP growth. These factors make it challenging for businesses to succeed in the state.
On the other hand, Indiana was ranked the best state to start a business in 2023, with a combination of low taxes, a reasonable cost of living, and a high percentage of the working-age population. These conditions make it an ideal place for new businesses to thrive.
Other states that ranked highly on the list include Utah, North Carolina, Tennessee, and Texas. These states were ranked based on factors such as their business-friendly environment, low taxes, and strong workforce.
In contrast, New York was ranked as the worst state to start a business due to its high cost of living, high unemployment rate, and low business survival rate (at 79%). This makes it less than an ideal place to start a new business.
For businesses looking to hire degree-level workers, Massachusetts, Colorado, and Connecticut provide the best workforce, with more than 40% of residents having a college education. These states have highly educated populations, making them a great location for businesses that require a skilled workforce.
It's worth noting that the COVID-19 pandemic has significantly impacted the business landscape in every state. Many businesses have been forced to close their doors due to lockdowns and restrictions, while others have had to adapt to new ways of operating. As such, the metrics used in the ranking may not fully capture the current state of the business environment in each state.
Overall, the Forbes Advisor ranking provides valuable insights into the best states to start a business in 2023. While Louisiana may have ranked lower on the list, the state still has many opportunities for entrepreneurs and small business owners. By focusing on improving the state's workforce, business climate, and economy, Louisiana can become a more attractive destination for businesses looking to set up shop.