By Rob Roper
The personal finance website WalletHub just published an analysis of the best and worst states to start business. As the site points out, 1 in 5 new businesses fail within the first year, and half don’t make it to five years. Therefore, picking the right location is key. Vermont, they conclude, ranks 47th out of 50 when deciding where to set up shop. Not good.
WalletHub looked at 25 metrics under three umbrella categories: Business Environment, Access to Resources, and Cost. Overall, Vermont scored 46, 49 and 27, respectively. In the subcategories, Vermont stood out in Lowest Average Growth in Number of Small Businesses (49th), Shortest Average work week (45th), and Highest Total Spending on Incentives as percentage of GDP (third). If that last statistic is correct, it is evidence that targeted incentives to attract businesses is not a good strategy for Vermont.
As we’ve said before, you can take these types of rankings with a grain of salt, but they do have an impact on public opinion — especially when time after time, in ranking after ranking Vermont lands in the bottom five or 10 places for taxes, or business, or to retire, etc. At some point you have to start face the reality that it’s not the survey, it’s you.
The one silver lining in all of this: New Hampshire scored 49th. Yes, we finally did better than New Hampshire in one of these rankings! In your face, New Hampshire! I guess we can all thank God for Hawaii.