A nationwide academic survey of business conditions indicates that there are growing opportunities to start your own business in North Carolina. The study ranked the state 26th in entrepreneurship. That may not sound like a high score, but it is a major improvement over last year’s no. 38 ranking, indicating that the business formation environment is improving.
The ranking comes from the University of Nebraska, which releases a State Entrepreneurship Index each year based on data from the year before. Researchers base the state rankings on five factors: net growth in businesses, rate of business formation, patents per 1,000 residents and average income for business owners. Data is measured per capita to eliminate size advantages in states with larger populations.
For 2011, North Carolina did well in four out of the five categories. It only fell behind the pack in average proprietor income. The index gave the state an aggregate score of 1.03, which is above the median and good enough for 26th place.
The state with the top score was Massachusetts, followed by North Dakota and California. South Carolina was 48th with a score of 0.19, which is actually an improvement of two spots from the 2011 index.
These results appear to be good news for anyone thinking about starting their own business in North Carolina. However, there may be complications to business formation that may not seem obvious at first. Hiring a business law attorney to consult you through the process now can help avoid possible headaches later.
Source: Charlotte Business Journal, “NC at No. 26 for entrepreneurship,” Jen Wilson, Oct. 5, 2012
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