If you plan to start a business in New York, it may be a little more difficult to keep it afloat, because Wallethub has classified the State Empire among the worst states to start a business in 2025. According to a recently published report.
THE American work statistics office Said that around a fifth of all startups do not survive longer than the first year of activity and about half never reach five years. New York is one of the last 10 states of the list, which compares the 50 states out of 25 key indicators for the success of startups, such as the growth in the average turnover of companies, the share of the population having done university studies and the cost of living.
“It is crucial to establish your business in a state that will maximize your chances of success,” said Chip Lupo, Wallethub analyst. “The best states have tax rates for low companies, strong economies, abundance of reliable workers, easy access to financing and affordable real estate.”
This is why New York was so low on the Wallethub list.
How New York is doing
Classified 40th in the general classification with a total score of 41.25, the average growth in the number of small businesses in New York is one of the weakest in the country and the state is equally with California and Alaska for the Rent of the most expensive offices, according to Wallethub’s analysis.
The Empire State, however, obtained a fairly high score in terms of access to resources, since it finished among the first five.
How Wallethub assessed the success of a startup
Wallethub compared the 50 states according to three indicators: the commercial environment, access to the resources and costs of the company.
THE business environment The category has examined these aspects:
- Average working time per week (in hours)
- Share of workers committed
- Growth in the number of small businesses
- Per capita startups
- Average turnover growth in companies
- Five -year -old business survival rate
- Industrial variety
- Industrial cluster force
- Entrepreneurship index
- Share of fast -growing businesses
- “Digital States” survey note
- Employment growth
- GDP growth
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THE Access to resources The category included these elements:
- Accessibility to financing
- Amount of venture capital investment per capita
- Availability of human capital
- The assets of higher education
- Share of the population having done college studies
- Population of the working age population
THE corporate costs The category has taken these factors into account:
- Affordability of office spaces
- Labor costs
- Average annual single insurance premium per employee registered
- Corporate taxes
- Total effective tax rate at the national and local level on the head offices of mature companies
- Cost of living
The data used to create the classification was collected on September 19, 2024 and the information comes from several entities, such as the Bureau of Labor Statistics, the National Venture Capital Association and the Federal Deposit Insurance Corporation.
Emily Barnes reports on consumer problems for the New York Connect team from the USA TODAY network, focusing on subjects related to scams and reminders. Follow her on Twitter and Instagram @ByemilyBarnes. Contact us at ebarnes@gannett.com.