Alabama is 9th Worst State for New Businesses

Date: July 17, 2017

 

Gov. Kay Ivey signed numerous NFIB-supported bills into law after Alabama’s 2017 regular legislative session ended, but there is still work to do to boost the state’s business friendliness. According to a recent report from WalletHub, Alabama is in the bottom 10 when it comes to the best states to start a business.

WalletHub analysts compared all 50 states using an evaluation of 20 metrics that fell under three key categories: business environment, access to resources, and business costs. These included factors like average growth in number of small businesses, average growth of business revenues, five-year business survival rate, taxes, labor costs, availability of human capital, and financing accessibility.

On the 100-point scale, Alabama scored 40.92 for a rank of 42nd overall, last for business environment, 31st for access to resources, and ninth for business costs. All neighboring states fared better: Florida ranked sixth overall, Georgia eighth, Mississippi 28th, and Tennessee 27th.

Additionally, in its midyear report, the Tax Foundation found that Alabama had the fifth-highest combined state and local sales tax rate: 9.03 percent (4 percent state sales tax, 5.03 percent average local sales tax).

The 2018 gubernatorial election is beginning to heat up, and candidates have their work cut out for them.

Related Content: Small Business News | Alabama | Economy

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