Georgia Second Best State for starting a Business
Posted: January 22, 2024 | Categories: News
Starting a business is never easy. About one-fifth of all startups typically don't survive past year one of operation, according to the U.S. Bureau of Labor Statistics, and nearly half never make it to their fifth anniversary.
Staying afloat is difficult even under normal conditions, and even more so when dealing with high inflation and labor shortages.
Outside of the currently difficult economic conditions, there are plenty of other reasons that startups fail, with a "bad location" being among the most common. Choosing the right state for a business is therefore crucial to its success. 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.
The second-best state for starting a business is Georgia, which has one of the highest entrepreneurship rates in the country. There's great growth potential, too, as business revenues rise faster in Georgia than in most other states.
Georgia also has the second-highest share of businesses that are in "strong clusters." 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 particular specialization. If businesses fit into one of these clusters, they will have an easier time getting the materials they need, and can tap into an existing customer base.