NFIB explains paltry 59.2% survival rate
A new report by Eton Venture Services ranks Washington state dead last for business startups based on June 2022 data from the U.S. Bureau of Labor Statistics, the latest available.
While Missouri took the top spot, with just 139.43 establishment deaths per 100,000 people, Washington state had “… a staggering 541.75 establishment deaths per 100,000 people.” That’s a paltry 59.2% survival rate.
Forbes.com largely agrees, ranking Washington #48 for best places to start a business, edging out only New York and Vermont. The Forbes report considered several other factors in addition to business survival rate in determining its rankings.
When asked to comment on the Eton report, NFIB Washington State Director Patrick Connor explained, “Would-be entrepreneurs need to look closely at Washington state’s particular costs and requirements before considering opening their doors for business. While we’ve made some progress on state and municipal business licensing fees, Washington’s tax and regulatory obligations place a crushing burden on its small businesses.”
Connor noted:
- Washington’s statewide minimum wage is the highest in the nation, as is our overtime-exempt minimum salary threshold.
- The B&O tax equates to a more than 15% corporate income tax rate – the highest in the nation, and roughly double the average in most states.
- Washington’s maximum weekly unemployment benefit is the second highest in the nation, and our average unemployment tax rate is among the 10 highest – nearly 60% higher than the national average.
- Worker’s compensation taxes are 33% higher in Washington state than the national average.
- Washington is one of only 17 states mandating paid sick leave.
- Washington was one of the earliest states to implement a paid family and medical leave program, and remains the only state with a long-term care benefit, both collected through payroll taxes.
“With many of the nation’s highest taxes on employers, and most generous government-mandated incentives for workers to stay home,” Connor said, “it’s no wonder Washington state is a graveyard for startup small businesses.”
More recent state rankings that may be of interest.
- 2–US News’ Best States 2023
- 7–CNBC’s America’s Top States for Business
- 29-Fraser Institute’s Economic Freedom Index
- 34-American Legislative Exchange Council’s Rich States Poor States
- 35-Tax Foundation’s 2024 State Business Tax Climate Index
- C-Truth in Accounting’s Financial State of the States 2023
