Georgia is the eighth best place in the country to start a business, according to a report Wednesday.
Although many new companies fail, many of those failed start-ups went belly-up because they were in the wrong place, according to WalletHub, which authored the report.
It’s always a gamble, but Georgia is one of the better places to bet, they say.
The number of net start-ups fell by 37 percent between 2007 and 2010.
But last year, there were more than 13,000 new companies in Georgia – up 48 percent from 2010, when the economy was struggling to emerge from the recession.
Georgia now ranks high, not because it ranks at the top on any of the indicators for start-ups, but because it is above average on so many of the measures, according to WalletHub, which calculated the list.
For example, Georgia ranks 13th in business environment, 14th in access to resources and 10th in costs – far better than average.
In comparison, Montana ranks fourth in business environment but a weak 49th in its access to resources. So Montana ends up three slots behind Georgia overall.
Roughly one of every five start-ups don’t even survive a year, according to the Bureau of Labor Statistics. Nearly 50 percent don’t make it to age five.
“Choosing the right state for a business is therefore crucial to its success,” says WalletHub. “A state that provides the ideal conditions for business creation ... can help new ventures not only take off but also thrive.”
Georgia might have surged from an economic backwater to a regional hub for logistics and innovation with several decades of appeal as a low-cost environment replete with cheap labor and land. But lots of states made that appeal – and as Georgia has prospered, the cost of living has risen modestly.
So we’re not dirt-cheap, but we’re pretty affordable.
Where Georgia does best is provide the raw human talent needed for business, according to WalletHub. The state ranks fifth on that.
Compared with the other 49 states, here is how Georgia stacks up on some other metrics, according to WalletHub:
-- 20th lowest labor costs
-- 10th cheapest office space
-- 14th lowest cost of living.
At the very bottom of the WalletHub rankings were mostly northern states. Ranked number 50 was New Jersey.
The top ten states for starting a business:
1 North Dakota
10 South Dakota
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