Entrepreneurship in the Black community isn’t a new phenomenon. Seventeen percent of Black women in the US are either starting or running new businesses. That’s compared to just 10% of white women, and 15% of white men.
Yet despite the jump, only 3% of Black women are running successful businesses. There are a myriad of reasons for this ranging from deep systemic inequities and lack of adequate funding resources. A new analytic report, however, says it could be all about location, location, location.
TOP Data identified the most “entrepreneurial-friendly” states by comparing US’s 50 states across nine key metrics. The data set ranges from start-up job creation rates to local business taxes to the availability of workers. The data analytics firm also outlines which are the worst states for entrepreneurs as well.
Topping the list is Vermont with Florida coming in at a close send. At the bottom of the list is Illinois.
Other key insights from the report state that South Dakota projects to have the most new businesses created in the next two years with 9,400 per 100,000 people, which is 1.4 times higher than North Dakota, the #2 ranked in that category. North Carolina has the highest share of minority-owned businesses, 19.2%, 14.7 times higher than Massachusetts, the lowest at 1.30%. And Vermont has the highest number of small businesses per 100,000 people, 12,637, 1.9 times higher than West Virginia, the lowest at 6,436.
The rankings were determined by states’ data on eight key dimensions: Affordability, Crime & Safety, Economy, Education, Healthcare, Infrastructure, Opportunity and Quality of Life. Other supporting factors included Grocery Costs, Sales Tax Rate: Regular Weight, transportation costs among many other expenditures that deeply affect the bottom line of small business owners.