Pennsylvania ranks among the worst states in which to start a new business, according to a new WalletHub study.
The study, comparing 50 states across 26 indicators of startup success, ranked Pennsylvania 46th overall based on business environment, access to resources and business costs.
Pennsylvania’s ranking put it below even New York and California, states widely seen as burdened by overregulation.
Although Pennsylvania ranked 22nd for access to resources, it ranked 47th for business environment, a category which received greater weight in the study. Business environment includes metrics such as startups per capita, five-year business survival rate and growth in number of small businesses.
Pennsylvania was ranked 37th for business costs, which includes metrics such as office space affordability, labor costs, corporate taxes and cost of living.
James Kunkel, executive director of the Saint Vincent College Small Business Development Center, said the WalletHub study shows that more work needs to be done to encourage entrepreneurship and self-employment as a viable career option in Pennsylvania.
“I suspect the business environment metrics are significantly influenced by demographic trends,” he said. “Pennsylvania has an aging population, with fewer young people who typically create new business ventures.”
The WalletHub study ranked Texas as the best state in which to start a business and Rhode Island as the worst. New York and California ranked 42nd and eighth respectively.
