The Best and Worst States to Start a Business in 2018 It's true what they say-- location is everything.

By Madison Semarjian

Opinions expressed by Entrepreneur contributors are their own.

Sean Kaufmann | Getty Images

Location, location, location applies to more than just the real estate industry. In fact, where you start your business is one of the most overlooked but important decisions when building your company.

Comparing all 50 states in terms of business environment, access to resources and business costs, WalletHub set out to find why certain states were more nurturing environments for startups than others. After taking into consideration 25 key factors, including average work week length, startup survival rate, venture investment amount per capita, office-space affordability and others, WalletHub compiled a list of the best, and worst, states to start a business this year.

Related: The Best and Worst U.S. Cities to Launch a Business

The Wild West takes the lead, with Texas, Utah, Arizona and California all scoring a spot in the top 10. On the opposite end of the country (and list), New England had a rough go this year. Connecticut, New Hampshire, Maryland and Rhode Island all ranked as some of the worst states for entrepreneurs.

Move down the coast, however, and things start to look brighter (literally). The southeast was well represented, with Georgia and Florida snagging two of the top 10 spots.

Despite being one of the U.S.'s hottest travel destinations, Hawaii was titled the worst state for entrepreneurs in 2018. Though beaches and luau's are nice, save them for vacation.

Here are the best states for startups in 2018, according to WalletHub:

  1. Texas

  2. Utah

  3. Georgia

  4. Montana

  5. Oklahoma

  6. Florida

  7. North Dakota

  8. California

  9. Arizona

  10. Colorado

Here are the worst states to start a business in 2018, according to Wallethub:

50. Hawaii

49. New Hampshire

48. Rhode Island

47. Pennsylvania

46. West Virginia

45. New Jersey

44. Connecticut

43. Maryland

42. Alabama

41. Wisconsin

Wavy Line
Madison Semarjian

Founder of Mada

Madison Semarjian is the founder of Mada, an outfit curation app.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Making a Change

Grow Your Skillset with This Massive Online Learning Platform

Get access to more than 1,000 online courses for just $45.

Growing a Business

10 Ways Entrepreneurs Can Navigate a Down Economy

In a down economy, you face significant challenges as an entrepreneur — but here are ten tips to help you navigate.

Business News

The Virgin Islands Want to Serve Elon Musk a Subpoena, But They Can't Find Him

Government officials would like to talk to Tesla's owner as part of an investigation into the Jeffrey Epstein case.

Operations & Logistics

7 Ways Data Helps Your Restaurant Succeed

By using underutilized analytics and data, you can gain valuable insights into your business and make data-driven decisions to achieve long-term success

Fundraising

5 Tips to Win Over Investors in Uncertain Times

Trustworthy, confident and coachable entrepreneurs don't allow an uncertain economy to distract them from executing their business plan.

Marketing

How to Use Pop-Up Advertisements on Your Website Without Annoying Users

Pop-ups are potent tools for web conversions. Here's how to use them without driving your users away.