CT Ranks Among Worst States To Start A Business In: Study

CONNECTICUT — It’s never easy to start a business. One-fifth of startups never make it past a full year of operation, and about half never make it five years, according to U.S. Bureau of Labor Statistics.

It turns out that staying afloat is even harder than usual in Connecticut, according to personal finance website WalletHub.

Connecticut ranks as the second-worst in the country when it comes to starting a business. It ranked ahead of only Rhode Island, in dead last.

WalletHub compared the 50 states in 25 “key indicators of startup success.”

“Outside of the currently difficult economic conditions, there are plenty of other reasons that startups fail, with a ‘bad location’ being among the most common,” WalletHub wrote. “Choosing the right state for a business is therefore crucial to its success. A state that provides the ideal conditions for business creation — access to cash, skilled workers and affordable office space, for instance — can help new ventures not only take off but also thrive.”

Connecticut has the second-worst business environment and is the fifth-worst when it comes to startup costs. The only good news for the Constitution State in the study was that it ranked No. 10 in access to resources.

In the business environment category, WalletHub considered factors like the average length of work week, the number of startups per capita, and GDP growth. Business costs included factors like office space availability, labor costs, and cost of living. Access to resources included factors like venture investment amount per capita, financing accessibility, and higher-education assets.

The study found that Utah is the best state to start a business in. Georgia, Florida, Idaho, and Nevada round out the top five.

“Starting a business is a difficult and risky process, but where you live can highly influence your chances of success,” WalletHub Analyst Cassandra Happe said. “Before establishing a business in any location, make sure to do research to ensure it’s an ideal place for your customer base, has enough labor and supplier availability, and suits your needs when it comes to financing.”