Colorado is one of the top 10 states to start a business, despite being one of the worst for availability of human capital, according to a new report.
The report, “2018’s Best & Worst States to Start a Business,” by personal finance website WalletHub, compared the 50 states across 25 key indicators of startup success to determine the most promising places to launch and grow a business. Colorado came in at No. 10 on the list.
Texas, Utah and Georgia were rated the top three states to start a business, while Rhode Island, New Hampshire and Hawaii were at the bottom of the list.
According to the report, Colorado is second only to Massachusetts in the “most educated population” category, but comes close to having the nation’s worst ranking for availability of human capital (No. 48 among all states).
Other indicators in the study’s data set included financing accessibility, venture investment amount per capita, higher education assets, average length of work week, labor costs, office space affordability, average growth in number of small businesses, startups per capita, average growth of business revenues, insurance premium per enrolled employee, corporate taxes, and five-year business survival rate.
About one-fifth of all startups typically don’t survive past the first year of operation, according to the U.S. Bureau of Labor Statistics — and in February, CB Insights named location among its top 20 reasons why startups fail.
“Choosing the right state for a business is … crucial to its success,” according the WalletHub website. “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.”