The 5 Best And Worst States For Entrepreneurs (PHOTOS)

Location, location, location: A new study confirms that where you start and run your business could affect your success -- even your survival. According to the latest State Entrepreneurship Index published by the University of Nebraska-Lincoln, states in the Northeast and Northwest are the most favorable for entrepreneurship, while a certain southern city that boasts a lot of charm, but not a lot of entrepreneurial activity, ranked last.

Whereas the recession was a big factor for entrepreneurs in some of the bottom five states, “the states where the traditional model of economic development has been starting companies -- such as in the Northeast [and] California and other states in the Northwest -- that tends to continue because they’ve got the investors, they’ve got a concentration of experienced entrepreneurs that allow them to create high-income entrepreneurship even in the difficult economic conditions,” Eric Thompson, director of the university’s Bureau of Business Research, told Bloomberg Businessweek.

Rankings were compiled according to five components: percentage growth in business establishments, per capita growth in business establishments, business formation rate, number of patents per thousand residents and gross receipts of sole proprietors and partnerships per capita. Thompson provided HuffPost Small Business with additional details as to why these states were hot or not hot for entrepreneurship.

Here are the five best and five worst states for entrepreneurship:

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Comments

[masterinventor001embarq]

09:12 PM on 09/09/2011

Ft. Myers fla should be on the list for the epicenter of invention conception. Only one guy though the tops in the world. Located at the place of the historic place of the high federal 4 men producing all we see since the invention of fire in 1803

[intellectualTradition]

05:11 PM on 09/08/2011

it is very difficult for me to disagree with hard numbers. but i have to say, i don't know anyone who is starting new enterprises or real start ups that is doing so in any of the 'top states'. obviously, i cannot prove this, but this article feels wrong

[annyp]

05:13 PM on 09/07/2011

Isn't amazing what an education program can do. Noticed that the top are blue and bottom red. Isn't the red that gets back more fed money than they put in? The blue care for their people I would have to say.

[AdvisorGary]

04:48 PM on 09/06/2011

I could not pass up an opportunity to say something about this. Here are some of the more interesting points about this Best & Worst States for Entrepreneurs... All of the bottom states are in the Southwest and Southeast. The best States are either in the Northwest and Northeast. Why is that? It has all to do with a way of thinking and the methodology behind growth. In the North, there many organization that work with youth to give them strong academics and practical skills. Even if you are from a low income situation, there are opportunities available for youth in Northern cities to escape that way of life. For those that are interested in entrepreneurship, there is an abundance of educational institutions that value entrepreneurial learning. At the same time, venture capital is available to help build new innovations. Those are the kinds of elements you need to have a growing economic environment. Education, real-world opportunities, and funding are the necessary elements for any growing society. Unfortunately, you just don't have that in most Southern states.

"Wherever there is a problem, there is an opportunity." Entrepreneurs are a dime a dozen in the North. South Carolina, on the other hand, is a place that is starving for that type of thinking. So Entrepreneurs, see the "Worst" list as an opportunity. The business ideas that don't get the time of day in New York will be seen as brilliant in an up and coming Southern city.

[zagyzebra]

11:38 PM on 09/04/2011

Oregon has the very solid nonprofit MIPO program...Mentoring Inventing Prospering Opportunities. Similar programs are needed all across the country to help make the U.S. financially prosperous again.

[oilfield]

08:51 PM on 09/04/2011

so how many businesses actually need a patent? why is this relevant to most businesses? is the dollar amount corrected according to living cost?

[JoeWolfe]

11:12 PM on 09/05/2011

I agree - I think they emphasized the patent thing way too much! I know many people who have started innovative businesses and programs where no patent was required, including some amazing charter schools and educational programs that are run as a business.

Joe
http://how-to-make-money-with-penny-stocks.blogspot.com/

[Raccoon1]

07:43 PM on 09/04/2011

We need to be more careful when using the word 'business'. There's Wall Street and there's Main Street.

Republicans are fighting for Wall Street and international corporations - this though the Chorus of 'everyday' Republicans, led by their choirmasters at Faux Noise, thinks that they mean Main Street and average citizens.

Democrats are fighting for Main Street - small guys that are trying to start businesses. The article pretty much prove it by example.

[BigDaddyWow]

02:02 PM on 09/04/2011

It's interesting that this report doesn't address any of the real issues of running a business like taxes, cost of office space, cost of living. It does address available workforce. Seems to be more geared towards funded startups that want to have a cool place for a business. Their assertion about location is crazy.

[Billy Billy]

12:25 PM on 09/04/2011

So the best states to live in and run a business in is in all states (except for NJ) is run by Democrats and NJ before now was more then less run by dems too..Now lets see what is the worst states to live in and run a business in ? Opps looks like it is Republican states..

Can't wait for the comedy spin from fox news on this...Shhh I know you tea party nutters will just hate this. eat your heart out..LOL

[qwertymate]

05:17 PM on 09/03/2011

Definitely NY is a great state for starting a business. Although, one can become successsful only if he is stress-resistant and absolutely confident in his powers. I'd like to try establishing business in Big Apple!

[Ice4you]

12:32 PM on 09/03/2011

Interesting all on top 5 blue states and all at the bottom red states.

[rfmaneater]

10:14 PM on 09/02/2011

Every state mentioned in the best catagory is a Blue state. I thought Democrats were bad for Businesses. None are Right to Work states either (Non-union Government worker states)
I guess this should belong on that show MYTH BUSTERS

[cvclark76]

10:11 PM on 09/02/2011

Let's see- the Best- the states where they value education and quality of life. The Worst- places that just want "the governement out of my life, lower taxes and the hell with the environment". Hmmm? Think there is a connection?

[JAVA VB]

08:57 PM on 09/02/2011

entrepreneurship is living a few years of your life like most people won't, so that you can spend the rest of your life like most people can't.

[zagyzebra]

11:34 PM on 09/04/2011

Spoken like a true entrepreneur.

[tdpubs]

09:49 PM on 10/23/2011

Here's one for you, entrepreneurs don't wait for the government to give them tax breaks before they come up with problem solving ideas to satisfy market demand.

[Raccoon1]

07:34 PM on 09/02/2011

Lookit all them libural states in furst plac. I figgured Texas wood bee furst.

Them libural states waste muney on educatin kids. Buildin rodes, light rale, promotin bizness, an stuff like that. They otta be cutin taxes and lokin people up. Thats what makes gud bizness.