The first 9 out of 10 are Republican states, with Florida and Utah in 1st and 2nd place, respectively, according to a report by Wallet Hub.
Economist Vance Ginn says that’s no surprise when you let capitalism do its job.
“Having limited government, less spending overall by the government, lower taxes, less regulation. Those things really allow for an environment of more expansion of jobs, along with new start-ups, and new jobs that come across different sectors of the economy. This solidifies that having less government in our way when you start a business- is important.” Ginn said.
One of the factors is affordability and the lower cost of living.
Texas ranks 3rd in the US with the most workers between the ages of 16 and 64 according to the Wallet Hub report. “Individuals who are moving from other states, happen to be younger, they're the ones that typically will move more.” He said.
As Texas lawmakers push to create a business-friendly environment, he says there is one area that could use improvement. “Excessive government spending at the state and local levels contributing to higher property taxes.” Ginn said.
Many entrepreneurs are incentivized to come to Texas for the affordability, less government red tape, and the thriving housing market- that in recent years- has a better outlook compared to the nation’s housing market. All these factors are extremely attractive to new business owners.
The report said Texas also has a high cluster percentage of 53 percent. Clusters are interconnected businesses that specialize in the same field, and “strong clusters” are ones that are in the top 25% of all regions for their specialization. If businesses fit into one of these clusters, they will have an easier time getting the materials for their customer base.
The report showed the first blue state on the list was California coming in at 10th place.