10 best and worst states to start a small business | Entrepreneur

There are many important things to consider when trying entrepreneurship and starting your own business, and location is at the top of the list.

According to the U.S. Small Business Administration, the location of your business will impact everything from taxes to zoning regulations, so it’s worth being strategic when choosing a state, city, or even neighborhood.

Choosing the right place to start your business can also make or break its success.

Related: 5 things not to do if you run a small business

According to the U.S. Bureau of Labor Statistics (BLS), approximately 20% of new businesses fail within the first two years of opening, 45% within the first five years, and 65% within the first 10 years.

Capital on Tap, a company that offers small business owners a credit card and expense management platform, analyzed BLS data to determine the percentage of startups that are still active after three years and divided the U.S. states with the highest and lowest odds of survival over three and five years years.

“There are over 30 million small businesses in the U.S., which constitute a huge percentage of the economy, and as they continue to grow, their numbers will grow, as will their innovation and commercial motivation. This study should be a positive signal for entrepreneurs from the top ten states who are thinking about starting a business,” said Damian Brychcy, legal director for America and product at Capital on Tap.

^{Image source: John Coletti | Getty Images. Boston, Massachusetts.}