If you are looking to launch a new startup, you might find a perfect home in North Carolina.
This is reported by the online Lending Tree Loan Market, which recently published a study of which cities in the United States currently offer the best range of terms for entrepreneurs looking to start a new business. Topping the list: Raleigh, North Carolina, a capital city with low unemployment and a well-educated working population.
In fact, several cities in North Carolina topped the Lending Tree rankings, prompting the report to name Tar Heel State as the best place in the country to start a new business. Charlotte and Durham placed third and fourth respectively. And Greensboro and Winston-Salem came in 39th and 48th.
One of the reasons for North Carolina’s strong representation: the state offers one of the lowest corporate tax rates in the country. It also has the lowest maximum corporate tax rate in the country, at 2.5%, which helps it land second in the CNBC 2021 ranking of the best U.S. states for business.
The Lending Tree Study ranked the 100 largest metropolitan areas in the United States by population, based on factors such as the proportion of residents with bachelor’s degrees, state corporate tax rates, and costs. local housing. The study drew on data from the US Census Bureau and analysis from the Ewing Marion Kauffman Foundation for Nonprofit Entrepreneurship.
Raleigh rose to the top of the rankings thanks to its relatively low unemployment rate, which stood at 3.9% in July. That’s well below the national rate, which was 5.4% at the time and has since fallen to 4.8%.
More than half of the city’s population, which stands at 468,000 people according to the Census Bureau, is between 24 and 55 years old. And 48% of city residents hold at least a bachelor’s degree, which is the seventh highest proportion on Lending Tree’s cities rankings. The average for all 100 metropolitan areas is 34.5%.
Meanwhile, Austin, Texas, placed just behind Raleigh for second place on Lending Tree’s list. Austin received high marks for its strong business survival rate, with 80% of new businesses past their first year, ahead of the national rate of 78%.
Businesses in the Texas capital also benefit from favorable state tax laws, which tend to attract start-ups and large corporations. Several leading companies have announced plans to move to the Lone Star State over the past year, including Tesla and Hewlett-Packard.
Lending Tree’s ranking also highlights some of the worst metropolitan areas in the United States for starting a new business. Three Californian cities occupy the last three places on the list: Fresno, Stockton and Bakersfield ranked 98th to 100th respectively.
Each of these three cities suffers from a high unemployment rate compared to the national average. Bakersfield’s is the highest of the top 100 metropolitan areas in the United States, at 10.7% in July 2021.
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