Online business information leader Business.com has released an information-packed report determining the five U.S. states where entrepreneurs are most likely to be successful in starting a business. The findings, drawn from government and commercial sources, make a clear case that entrepreneurs can build high-performing businesses by locating them in California, Massachusetts, New Mexico, Tennessee, or Illinois.
Startups and small businesses already make up a sizeable piece of the American economy, and funding for new startups is on the rise. Currently, there are over 50 million businesses in the U.S. with fewer than 20 employees, providing 190 million Americans with jobs, and paying out $6 billion in payroll each year. In 2011, over $30 billion in fresh venture capital funding was seeded in the United States, a 23% increase over 2010.
California ranks #1 in the report, due in large part to entrepreneur-friendly Silicon Valley, but also because of startup activity in large cities like San Francisco, San Diego, and Los Angeles. In 2011, nearly $15 billion in venture capital flowed through the Golden State, with more deals than the rest of the top five states combined.
Massachusetts took the #2 position, which may come as no surprise given its long history of technological innovation, and the many colleges located in the Bay State. What’s more surprising are the next three states on the list:
New Mexico, home to many startup businesses in the aerospace, government, and military sectors;
Tennessee, which is leading a revolution in medical and health care startups;
Illinois, where online and biotech startups are thriving.
For entrepreneurs looking to start a small business, it helps to live in a state with plenty of venture capital funding. With high levels of VC activity come additional opportunities for entrepreneurs: networking, mentoring, and support from fellow entrepreneurs. These opportunities make VC-heavy regions ideal for startup businesses, even those that are self-funded.
Business.com specializes in helping startups of all kinds find the vendors and services they need to be successful, from phone service to postage meters. No matter where a startup is located, Business.com is there to help.
The report can be viewed here: http://www.business.com/blog/?p=5103
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