Florida is one of the best states to start a business, but one of the worst for getting a loan, says study


Location is everything, especially when it comes to starting a business, and it turns out Florida is a pretty desirable location.

Florida recently ranked sixth on WalletHub's list of the best states to start a business, trailing No. 1 champion Texas and followers Utah, Georgia, Montana and Oklahoma. For reference, Florida's "total score" was 58.09 to Texas' 64.40.

WalletHub's study also found Florida at No. 3 for average growth in the number of small businesses. However, Florida ranked No. 46 in accessible financing.

WalletHub, a website promoting financial success, conducted a study comparing all 50 states on a variety of ideal conditions known to be instrumental for startup success, including business environment, access to resources and business costs.

About one-fifth of startups don't make it past one year of operation, according to data by the U.S. Bureau of Labor Statistics. Among the reasons why startups fail: bad location or failed geographic expansion, poor marketing and lack of market need.

According to Fundera, an online lending marketplace guiding entrepreneurs through financial options, the Florida market for startups is pretty hot. Florida has the second-highest density of startups in the U.S., and with nearly 21 million people calling the Sunshine State home – that number was 19 million last summer – it's safe to say that people will continue to bet on their small business idea with paradise as a backdrop.

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