INDIANAPOLIS (WISH) — A new Forbes study ranks Indiana as the second-best state to start a business.
The study uses 18 indicators across five categories to rank states from best to worst. These categories include business costs (30%), business environment (20%), financial access (20%), economy (15%), and workforce (15%).
The study highlighted that the low cost of starting a business in Indiana is a positive for the state.
“Its business-friendly environment is highlighted by a modest $100 establishment fee, lowering the barrier to entry for new companies,” the Forbes article said.
Additionally, the study states that a “stable and nurturing environment for business growth” leads to a 77% business survival rate.
The study noted “remarkable” funding amounts for small businesses averaging just over $24,500.
According to a 2024 Forbes study, the top 10 states to start a business are:
- north dakota
- Indiana
- arkansas
- south dakota
- north carolina
- Ohio
- pennsylvania
- Alabama
- Utah
- south carolina
North Dakota surpassed Indiana in terms of average funding for small businesses, with nearly $35,000 available compared to Indiana’s $24,500.
Indiana ranked higher or tied for all other categories compared to North Dakota.
This is in addition to the low cost of living in Indiana. The Hoosier State’s cost of living index is 0.91, which is lower than the national average.
Forbes said this makes it an “economically attractive place for both business owners and employees.”
Indiana’s workforce is good for growing businesses. The study lists him 64% of the working age population, which means that startups have a significant number of employees to choose from when recruiting.
“All of these factors contribute to Indiana’s impressive score of 98 out of 100, making it an excellent choice for business ventures,” the study states.
You can learn more about this methodology on the Forbes website.
