‘Best place to start a business’ analysis ranks New Hampshire 35th in US Manchester Ink Link Biz

‘Best place to start a business’ analysis ranks New Hampshire 35th in US Manchester Ink Link Biz

NH metrics start a biz
New Hampshire ranks 35th in the U.S. as the best place to start a business, according to a data analysis by SimplifyLLC, a publication that provides free guides for small business owners. Graphic/SimplifyLLC

New Hampshire ranks 35th among states as the best place to start a business, according to SimplifyLLC research released this week.

“During a decade of change in the way Americans work, an unprecedented number of entrepreneurs are using remote work and artificial intelligence to launch companies from their laptops,” SimplifyLLC said in a news release accompanying the study’s findings. “Business owners who are less tied to any one location have new factors to consider when deciding where to set up their business.” SimplifyLLC is an independent publication that provides free guidance for small business owners.

SimplifyLLC identifies the best and worst states to start a business in 2024, including job creation, consumer spending, inflation, business growth and performance, corporate taxes, and whether educated workers are more likely to move to the state or out of state. analyzed seven indicators to make , according to a report accompanying the investigation.

“We found that some states promote stronger business climates than others,” the research report says.

New Hampshire is the worst state in the nation for consumer spending growth, according to the study. It ranks 51st (including Washington, DC). It also doesn’t do well in creating jobs, with a ratio of 9.2. On the other hand, it has the lowest inflation in the US, along with other New England states.

consumer spending growth chart
New Hampshire was the lowest-ranked state for consumer spending growth. Graphic/SimplifyLLC

Among the metrics studied, New Hampshire ranks:

  • 29th in new business growth, 7.1%
  • 6th in top performers, 16.2%
  • 45th on job creation, 9.2
  • 51st in consumer spending growth, -3.2%
  • 33rd in maximum corporate tax rate, 7.5%
  • 1st in inflation since 2021, 14.3%
  • 21st in net migration of educated workers, 3,192

The dimensions in the study are explained as follows:

The development of new business reflects the speed of creation of new enterprises, entrepreneurial activity and trust in the state.

Business activity reflects the satisfaction of existing businesses, providing insights into the state’s business environment and outlook.

Job creation, the ability of a business to create employment opportunities, is a direct indicator of economic vitality more broadly. [The rate is measured by economists with a formula that calculates inflow and outflow, among other numbers].

Consumer spending is a key indicator of the confidence and financial well-being of state residents, and it will affect the success of local businesses. [This is a formula that measures the amount people pay for goods and services.]

Corporate taxes directly affect the financial capacity of enterprises, a lower tax rate is considered more favorable.

Inflation varies regionally, affecting the cost of living and doing business. A higher rate is considered worse for the economic climate. New England states had the lowest rates since 2021, while states such as Montana, New Mexico and Idaho saw rates around 20%.

Educated worker mobility indicates how attractive a state is to skilled professionals, and it affects the availability of a talented local workforce. The figure shown in bullet points is the net profit.

regional inflation growth chart
New England states lead the United States in managing inflation. Graphic/SimplifyLLC

The main findings of the study were:

  • Wyoming, the No. 1 state, has no corporate income tax and has experienced rapid business growth (39.2%) over the past year. About 1 in 5 businesses say their recent performance is excellent.
  • Illinois is the worst state. The study found that Illinois experienced an exodus of educated workers (net -54,000 in 2022), a high corporate tax burden (maximum rate 9.5%).
  • Each state has its pros and cons. For example, Hawaii ranked 45th last year for weak business performance and job creation, but has the best rates in the nation for consumer spending growth (4.7%) and keeping inflation low through 2021. 16.9%).

The study’s report concluded: “While all states offer different opportunities and challenges for entrepreneurs, our findings may challenge preconceived notions about traditional centers of American innovation. As the business landscape continues to evolve in 2024, it is critical for aspiring entrepreneurs and established businesses alike to be aware of these regional nuances, allowing them to make strategic decisions about where to set up shop or expand operations in an ever-changing environment. .”

The full study and its methodology can be found here.

NH’s neighbors start a business

Maine, 22

  • 22nd in new business growth, 9.9%
  • 5th in top performers, 16.3%
  • 18, 11.4 on job creation
  • 49th in consumer spending growth, -1.7%
  • 46th in maximum corporate tax rate, 8.93%
  • 1st in inflation since 2021, 14.3%
  • 12th in net migration of educated workers, 9,575

Vermont, 37

  • 43rd in new business growth, 1.7%
  • 9th in top performers, 14.7%
  • 45th on job creation, 9.2
  • 45th in consumer spending growth, -0.2%
  • 43rd in maximum corporate tax rate, 8.5%
  • 1st in inflation since 2021, 14.3%
  • 26th in net migration of educated workers, -549

Massachusetts, 41

  • 31st in new business growth, 5.7%
  • 17th in top performers, 13.6%
  • 41st on job creation, 9.7
  • 46th in consumer spending growth, -0.9%
  • 39th in the maximum corporate tax rate, 8%
  • 1st in inflation since 2021, 14.3%
  • 48th in net migration of educated workers, -29,331

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