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[Report] The Best States To Start A Small Business: 2020-2021

Nov 20201 min read

Which are the best states in the US to own a small business?

Where you choose to found your business is one such factor. And in the US, different states can provide significantly different environments for business success.

More than 90% of businesses in the US are small and medium-sized (Salesforce, 2019). With small businesses so prevalent, and a key driver of the US economy, enabling them - with data - to make better decisions is important to us here at GoCardless.

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This report collates and analyzes 12 key, publicly-available data streams - from authoritative bodies such as the Small Business Administration and the Bureau of Economic Analysis - to rank all 50 states (and the District of Columbia) in terms of how favorable they are for small business owners.

Key findings include:

  • Best state to start a small business

  • State with the strongest small business landscape

  • State with the greatest talent pool

  • State with the largest recent economic growth

  • 6 best states for favourable tax rates

Featuring contribution from industry experts:

  • Pranav Sood, VP Small Business @ GoCardless

  • Tony Ward, President (Americas) @ Xero

  • Jared King, CEO @ Invoiced

  • James Ashford, Founder @ GoProposal

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