The Most Small Business Friendly States and Cities in the US
According to an annual survey by thumbtack.com , the best states and cities for small business in the US are Utah, Alabama, New Hampshire, Idaho and Texas. Additionally. four of the top ten residential areas for small business incubation were located in Texas, which due to a mild climate, low overhead and large population is very hospitable to entrepreneurs. Another factor that allows businesses to grow is the sense of community and preference for local brands exhibited by the local population. Surprisingly, the majority of businesses surveyed stated that taxes in their areas were not unfair, and said that the biggest factor in determining business friendliness was in fact the local licensing requirements. The easier it is to apply for licensing, be if for liquor, food services, hotels or other types of businesses, the easier it is for businesses to devote time to growth and avoid getting bogged down in bureaucracy. Another key attribute to business development is the ability for business owners to obtain small business funding. The economy has delivered a tough blow to many small business owners, damaging their credit or using up their savings, requiring them to apply for bad credit business loans. In the event that they have no collateral, they may not be able to get cleared even for these more lenient types of loans. To address this imbalance in the number of businesses that can get funding is one of the reasons that Horizon Business Funding was founded. A particularly important reason that the states mentioned above are small business friendly is their relatively low overhead for opening a business. Compared to places like New York City, the cost of living is so much lower that business owners can survive through much longer periods of slow sales than their counterparts in more expensive locations. A business that is experiencing poor performance, cannot find business funding and has high overhead costs that are wearing down cash flows is almost bound to fail, unless it can find a reliable source of alternative financing.
Photo Credit to Nicolas Raymond onFlickr