Forbes: Indiana ranked second-best state to start a business
INDIANAPOLIS (WISH) — A new survey from Forbes ranks Indiana as the second-best state to start a business.
The survey uses 18 metrics across five categories to rank the states from best to worst. Those categories include business costs (30%), business climate (20%), financial accessibility (20%), economy (15%), and workforce (15%).
The survey highlighted the low costs of starting a business in Indiana as a positive for the state.
“Its business-friendly environment is highlighted by a modest formation fee of $100, lowering the barrier to entry for new companies,” the Forbes article said.
In addition, the survey cites a “stable and nurturing environment for business growth” leading to a 77% business survival rate.
The survey notes a “notable” amount of funding for small businesses with the average just over $24,500.
The top ten states to start a business, according to the 2024 Forbes study, are:
- North Dakota
- Indiana
- Arkansas
- South Dakota
- North Carolina
- Ohio
- Pennsylvania
- Alabama
- Utah
- South Carolina
North Dakota beat Indiana in terms of average funding for small businesses with nearly $35,000 available compared to Indiana’s $24,500.
Indiana ranked better or tied in all other categories compared to North Dakota.
This is in addition to a low cost of living in Indiana. The Hoosier state scores a 0.91 on the cost of living index, which is lower than the national average.
Forbes said this makes it “an economically attractive location for both business owners and their employees.”
The labor pool in Indiana is a positive for a growing business. The survey cites 64% of the population of working age, meaning new businesses have a significant amount of employees to choose from when hiring.
“All these factors contribute to Indiana’s impressive scaled score of 98 out of 100, making it an excellent choice for business ventures,” the survey said.
You can read more about the methodology on the Forbes website.