Many of the factors to be considered when deciding the best states for starting a minority-owned small business will be the same as they would for anyone else. A state's tax climate, for instance, is of vital importance for a business owner of any background. The same can be said for a state's regulatory climate and legal system, their available workforce and transportation. Important personal considerations—such as quality of education—will likely also be important considerations.
Yet, it's evident that there are some states where minority-owned businesses consistently fare better than others. The underlying reasons are often subject to debate, but the facts are clear.
To gain a better understanding of the data, we've compiled two different “buckets” of information. The first is a straightforward listing of the states with the most and fewest minority-owned small businesses. Unsurprisingly, these rankings tend to correlate with the state's overall population size.
1,600,000 |
|
1,100,000 |
|
926,002 |
|
708,962 |
|
371,524 |
|
311,609 |
|
237,187 |
|
203,326 |
|
184,956 |
|
183,333 |
2,350 |
|
3,180 |
|
4,075 |
|
4,096 |
|
4,330 |
|
5,575 |
|
5,769 |
|
6,107 |
|
10,585 |
|
13,680 |
In the course of our research, we decided to break down the numbers a little further. In the second segment, we looked at the number of minority-owned small businesses as a percentage of the overall number of small businesses in each state. You'll note that some results held steady, with California, Texas and New York still ranking among the leaders. Meanwhile, states Vermont and Maine still rank at or near the bottom.
But we also found some interesting differences in the data, like Hawaii soaring to the top spot (by a lot). The District Of Columbia moved into the top five, and states like Indiana, Louisiana and Mississippi found their way into the top ten, too.
57.6% |
|
42.3% |
|
41.1% |
|
41.0% |
|
39.3% |
|
38.6% |
|
35.0% |
|
33.8% |
|
29.3% |
|
28.9% |
2.98% |
|
3.0% |
|
4.4% |
|
4.6% |
|
4.7% |
|
4.8% |
|
5.0% |
|
5.5% |
|
6.2% |
|
6.7% |
To gain a further understanding of a state's business environment, check out the rankings for each state's tax climate.
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