GOBankingRates: R.I. among worst states for entrepreneurs

RHODE ISLAND is the ninth worst state for entrepreneurs, according to GOBankingRates.com. / COURTESY GOBANKINGRATES.COM
RHODE ISLAND is the ninth worst state for entrepreneurs, according to GOBankingRates.com. / COURTESY GOBANKINGRATES.COM

PROVIDENCE – Rhode Island is among the worst states for entrepreneurs, according to a GOBankingRates.com study released Monday.
The Ocean State was ninth on the list, which said Rhode Island entrepreneurs “might have some serious cash flow problems,” adding the state is the fifth-worst for small business lending. It also mentioned that Rhode Island’s cost of living is 25.7 percent higher than the rest of the nation’s and also has high business taxes.
“Rhode Island businesses have more costs eating into their profits,” the study said.
A plus was the state’s larger-than-average employee pool, which GOBankingRates said is 6.6 percent of the state population. Still, it said small businesses face “substantial financial obstacles,” putting Rhode Island in the bottom 10 for entrepreneurs.
The worst state? West Virginia. The state has a high rate of failed businesses and low number of existing small businesses, the website stated.
The best state? Washington, where in 2013, the number of businesses founded in the state was 3.5 times the number failed businesses, it said.
Massachusetts was the only New England state to crack the top 10 best states for entrepreneurs, coming in at No. 8.
GOBankingRates said it looked at nine factors in its ranking, including taxes on businesses, lending to small businesses, costs in the state, productivity according to the state’s gross domestic product in 2014, number of existing small businesses per capita and startup opportunity data. The website said the best states have a strong culture of entrepreneurship and numerous small businesses. High costs, high taxes and difficulty accessing lending are some of the similarities shared by the worst states, the website said.

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