What Are The Best States/Provinces For 2023's Small Businesses?

The votes are in -- and there were nearly 5,000 for this poll!

From Aug. 5th through Sept. 9th, we asked Alignable's members to identify the best states and provinces to run and/or open a small business. (Naturally, we inquired about the most challenging spots, too).

And most poll respondents were quite clear and candid with their opinions. 

So Which States & Provinces Made The Top 5?

In the U.S., here's the list -- a few were quite close!

• Florida (19%)
• Texas (18%)
• Tennessee (8%)
• South Carolina (7%)
• South Dakota (6%)

In Canada, the Top 5 provinces were:

• Ontario (27%)
• Alberta (26%)
• British Columbia (15%)
• Saskatchewan (6%)
• Nova Scotia (5%)

Here were the reasons why most of these states and provinces rose to the top. According to those taking the poll, these places have:

• More SMB-friendly local politicians and policies, which usually focused on comparatively lower taxes, fewer restrictions, and more initiatives to both attract and protect small businesses 
• A better, more reasonable cost of living, including lower rents
• More collaborative small business communities and highly connected networks, where SMB owners look out for each other, and 
• A greater percentage of local consumers who spend their money with local merchants.  

And while some states and provinces didn't have the sheer number of votes required to land in the Top 5, there were several "honorable mentions" that received specific shout-outs in the poll comments. 

(Translation: members who just love where they live and work were not shy about praising those places, which was gratifying to see).  

Here are just some of the quotes we received:

• "Alabama has a very favorable climate for small businesses. The governor and her staff have put a lot into attracting new businesses and protecting existing businesses. It's non-union, has a great state government, and a lower tax structure."
• "Ohio & Wisconsin are the best, because their cottage industry laws are fairly set and reasonably attainable."
  
• "Idaho is very business-friendly."
• "Minnesota is where it's at for me."
  
• "In North Carolina, there are tons of resources for small businesses. Also, it was ranked by CNBC as the No. 1 state for small businesses in 2023."
  
• "Georgia has an excellent work environment. It's very easy to start a business there."
  
• "There are lower taxes and fewer regulations in Oklahoma."
  
• "Oregon is a great place for small businesses now, specifically due to an influx of potential customers and employees."
  
• "Arkansas has high ratings nationally. The state offered me a loan when the SBA declined my request."
  
• "Any state where they don't tax the hell out of you gets my vote."

What Were The Toughest States/Provinces For SMBs?

In terms of the places that are most challenging for small businesses, here's a quick list. (We'll have more details in a separate article we're planning to write soon). 

Top 5 Most Challenging States For SMBs In The U.S.

• California (27%)
• New York (22%)
• Illinois (11%)
• Massachusetts (8%)
• Florida (7%)

And In Canada:

• Quebec (20%)
• British Columbia (17%)
• Newfoundland/Labrador (15%)
• Ontario (15%)
• Nova Scotia (9%)

As you can see, Florida appeared on both the "best" and "most challenging" lists for the U.S. 

In Canada, British Columbia, Ontario, and Nova Scotia were on both lists, too. 

In these cases, opinions varied based on several factors including the poll respondent's industry, the age of their businesses, and more.

And here's a short summary of some of the more critical (and colorful) comments received about these places:

• "Anything outside of CA and NY would be a good place to run a small business. CA and NY are anti-small business states, and make it as difficult as possible to work there."
• "Anywhere but CA. It's massively challenging due to over-regulation, the sales tax, etc. Costs are impossible there, too."
• "I'm in PA and all I heard was 'the government was going to help small businesses with grants.'  But I've seen no help!"
  
• "I'm too old to start over elsewhere, but CT is not good."
• "Because of the economy, it's a terrible time to start a small business anywhere in the U.S. Many small businesses are hurting now."
• "Nowhere in Canada -- Canada, in general, just doesn't support small businesses the way the country should."

Similar to most surveys, the extreme views (both positive and negative) were the "loudest," repeating themselves over and over again as we evaluated the results. 

However, at least 25% of those polled commented that small business owners who have a good idea, the drive and determination to succeed, and the patience to push forward regardless of the obstacles, can make it in any state, province, or country. 

Several others said that they weren't sure about the benefits or drawbacks of all states or provinces, so they only commented on the states where they are currently running businesses, or those where they lived and worked previously. 

So, let's keep this conversation going. We'd love to see more of your thoughts on the best and the most problematic places to run a business in the comment section below. 

Your input could help guide (and protect) others who are thinking about expanding their businesses or starting a new one in a new state or province. 

We're happy to integrate some of those comments into future stories, as well, as this is truly an evergreen topic.

Thanks for reading!

And if you're interested in taking our new poll, please click here. We'd love to hear how your business is progressing now and what you expect for Q4.