Small businesses are the backbone of the American economy, and a recent study by Lendio, a small business loan provider, shows that a record number of small businesses are opening across the country. Wisconsin has been ranked as the 23rd best state in which to start a small business, according to the study.
The Small Business Administration reports that over 10 million small businesses have opened in the last two years, generating an annual revenue of $13.3 trillion. However, only 48.9% of small businesses survive for five years. Small business owners face challenges such as inflation, recession fears, and changing societal norms, as Americans work and live in new ways.
The news comes as more than $80 million in federal support has been allocated to small business programs. More than 99% of Wisconsin businesses qualify as a small business.
The Lendio study on the Best States to Start a Small Business analyzed data from the Bureau of Labor Statistics, Census Bureau, and Small Business Administration from 2016-2023. The study evaluated factors such as tax rates, startup survival rates, cost of living, educated worker migration, loans, funding, consumer spending, and incentive programs.
Wisconsin was ranked as the 23rd best state to start a small business. Key findings for Wisconsin show that 50.8% of small businesses survive for five years, there are 56 incentive programs, corporate tax rates are 7.9%, companies received $8.5 million in loans per 100,000 residents, and 18,500 educated workers moved into the state.
The study's complete state-by-state and national breakdowns are available at the Lendio website. Entrepreneurs who are considering starting a small business should take into account all of the factors identified in the study before choosing a location.
While there are risks involved with starting a small business, the rewards can be significant for those who are willing to put in the effort and take advantage of the resources available to them.
