Starting a business? Avoid these 10 states to stay afloat

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Starting a business? Avoid these 10 states to stay afloat

David Samuel Robbins | Getty Images

“Location, location, location” has been a real estate industry cliché for nearly a century and, since clichés are clichés because they are largely true (according to the well-known, er, cliché), the mantra still applies — and across many industries. To wit, a less-than-ideal location or failed geographic expansion was a factor in 9 percent of business start-up failures in a recent analysis of 101 shuttered new businesses from research firm CB Insights. Around one-fifth of all start-ups, in fact, don’t survive one year of operation, according to the U.S. Bureau of Statistics, reports WalletHub in its recent “2018’s Best & Worst States to Start A Business” ranking.

Here’s a look at the 10 absolute worst U.S. states in which to start a business, according to the WalletHub list. For the full ranking of all 50 states, visit WalletHub’s site.

By CNBC's Kenneth Kiesnoski Source: WalletHub
Posted 2 July 2018

  • 10. Alabama

    Total score: 45.90
    “Business environment rank”: 48
    “Access to resources” rank: 41
    “Business costs” rank: 9

    Source: WalletHub

    Huntsville, Alabama
    Traveler1116 | Getty Images
  • 9. Maryland

    Total score: 45.85
    “Business environment rank”: 29
    “Access to resources” rank: 8
    “Business costs” rank: 45

    Source: WalletHub

    Downtown Rockville, Maryland.
    Smith Collection | Getty Images
  • 8. Connecticut

    Total score: 45.05
    “Business environment rank”: 42
    “Access to resources” rank: 4
    “Business costs” rank: 46

    Source: WalletHub

    Norwalk, Connecticut.
    Denis Tangney Jr, | Getty Images
  • 7. New Jersey

    Total score: 44.00
    “Business environment rank”: 23
    “Access to resources” rank: 9
    “Business costs” rank: 50

    Source: WalletHub

    The downtown Newark skyline.
    Emile Wamsteker | Bloomberg | Getty Images
  • 6. West Virginia

    Total score: 43.60
    “Business environment rank”: 50
    “Access to resources” rank: 38
    “Business costs” rank: 4

    Source: WalletHub

    Harpers Ferry, West Virginia
    Walter Bibikow | Getty Images
  • 5. Pennsylvania

    Total score: 42.81
    “Business environment rank”: 47
    “Access to resources” rank: 22
    “Business costs” rank: 37

    Source: WalletHub

    Pittsburgh, Pennyslvania
    J. Altdorfer Photography | Getty Images
  • 4. Vermont

    Total score: 42.53
    “Business environment rank”: 46
    “Access to resources” rank: 49
    “Business costs” rank: 27

    Source: WalletHub

    Burlington, Vermont
    Glenn Van Der Knijff | Getty Images
  • 3. Rhode Island

    Total score: 41.88
    “Business environment rank”: 49
    “Access to resources” rank: 11
    “Business costs” rank: 35

    Source: WalletHub

    Providence, Rhode Island
    Jeff Greenberg | UIG | Getty Images
  • 2. New Hampshire

    Total score: 38.11
    “Business environment rank”: 45
    “Access to resources” rank: 48
    “Business costs” rank: 40

    Source: WalletHub

    Wolfeboro, New Hampshire
    Don Emmert | AFP | Getty Images
  • 1. Hawaii

    Total score: 37.16
    “Business environment rank”: 40
    “Access to resources” rank: 50
    “Business costs” rank: 43

    Source: WalletHub

    Honolulu, Hawaii
    Naomi Hayes of Island Memories Photography | Getty Images