New York Ranks Second to Last in U.S. for Business Start-Ups – Forbes

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In a recent analysis by Forbes Advisor, New York State has been ranked as the second-worst state in the United States for starting a business. The comprehensive study evaluated states based on a variety of factors critical to business success.

Forbes Advisor’s team assessed 18 different metrics categorized into five main areas: Business Costs, Business Climate, Financial Accessibility, Economy, and Workforce. Each metric contributed to a total score out of 100, weighted according to its perceived impact on the business environment.

Business Costs (30% of Total Score)

This category evaluated several financial factors including taxes and operational expenses:

  • Income Tax, Corporate Tax, Property Tax (each 3%)
  • Formation Fee (9%)
  • Minimum Wage (9%)
  • Number of Natural Disasters (3%)

Business Climate (20% of Total Score)

The business climate was assessed using data from the Small Business Administration (SBA) and Bureau of Labor Statistics, focusing on:

  • Total Growth in Small Business Since 2020 (8%)
  • Business Survival Rate (8%)
  • Number of Businesses per SBA Location (4%)

Financial Accessibility (20% of Total Score)

This metric looked at the availability of business funding, based on:

  • Average Funding (20%)

Economy (15% of Total Score)

The state’s economic health was measured by:

  • Per Capita Personal Expenditures (6%)
  • Gross Domestic Products per Capita (3%)
  • Cost of Living Index (6%)

Workforce (15% of Total Score)

The workforce quality and availability were gauged using several indicators:

  • Unemployment Rate (4.5%)
  • Percent of Population of Working Age (4.5%)
  • Percent of Degree-level Workers (3%)
  • Number of Universities and Colleges Per Capita (3%)

New York’s low ranking in this study highlights significant challenges faced by entrepreneurs in the state. High costs, regulatory complexities, and competitive pressures are some of the factors contributing to this position. However, this is just a brief overview of the factors contributing to New York State’s ranking in Forbes Advisor’s analysis. The detailed study can be found at Forbes Advisor.