Bismarck, North Dakota – North Dakota has already been proven to be a fantastic region to launch a business, according to research. However, as of 2023, those same groups are adamantly advising those looking to start their entrepreneurial career to look elsewhere.
In America, 20% of all new firms fail within their first year; those that do survive now face ongoing pressure from high inflation rates and an unsteady economy as a whole. Even yet, there are still a few other causes for why these firms fail, such as issues with employment and location. These concerns are particularly pervasive in North Dakota, which is ranked as the ninth worst state to start a business by the personal finance website WalletHub. But how did we go from being one of the top states over the years – many of our cities have recently been among the best places to launch a business – to be one of the worst?
WalletHub evaluated all of the United States across 27 crucial markers of start-up business success, ranging from the availability of finance to the cost of office space, in order to get to this conclusion. When the data was examined by Wallethub, it was determined that when it comes to various areas of launching businesses, ND took the following positions. North Dakota falls short of the national average in every category, with a median ranking of 25.
North Dakota’s Places- Starting a Business in the US
• Average Growth in the Number of Small Businesses — 47th place in the 50 states
• Labor Costs — 32nd place in the 50 states.
• Availability of Human Capital — 49th place in the 50 states.
• Cost of Living — 33rd place in the 50 states.
• Percentage of Residents Fully Vaccinated Against COVID — 38th place in the states.
Growth and financing are perhaps the best and worst situations for North Dakota’s small enterprises. North Dakota, along with South Dakota and Utah, is one of the three states with the most readily available funding for small businesses, although it also has some of the lowest rates of new business establishment. The cause is one that has been occurring far too frequently in recent months.
The fundamental problem here in North Dakota is a staff scarcity that is sweeping the state, despite the fact that above-average living expenses and labor prices are plausible explanations for the rating decline. This doesn’t just apply to new businesses, either. In the past month alone, businesses in all parts of the state have closed, including the Crossroads, BisMan Food Co-Op, and Borrowed Bucks’ Roadhouse, with the majority of them (including McKenzie River Pizza and Pub) blaming a shortage of hired labor.
