Northeast, Northwest thrive in creating small businesses
Franchising is booming in the tough economy and in some states, new startups are more attractive than ever. Michael Sipe of Bend, Ore., a franchise owner for FranNet, the network of small business consultants that helps guide clients to fulfilling careers in franchise ownership, is seeing an increase in corporate workers opting for franchise ownership.
His territory, which includes parts of Oregon and Washington, has plenty of potential for people who want to reinvigorate their careers through small business. “There’s a lot of entrepreneurial activity in all of these areas,” he said. “And the state is one of the better parts of the country to open a new business.”
Sipe is right, and according to a recent study by the University of Nebraska, he picked one of the best areas of the country to start a business of his own and counsel others to do the same. The university’s Bureau of Business Research ranked all 50 states on a scale that factored in 2010 statistics for percentage and per capita growth in business establishments; business formation rate; number of patents per thousand residents; and per capita gross receipts of sole proprietors and partnerships.
The bureau found that a trio of northeastern states and two western ones, Oregon and Washington, provided entrepreneurs with the best environments for starting and developing their small businesses, whether they’re start-ups or franchises. Those five states have established histories of economic development through company creation, said bureau Director Eric Thompson: “They’ve got the investors, they’ve got a concentration of experienced entrepreneurs that allows them to create high-income entrepreneurship even in the difficult economic conditions.”
The top five states, in reverse order:
5. Oregon. Business formation rate above zero, a strong showing considering the economy. High rate of patent activity and establishment growth.
4. New Jersey. Solid patent activity and business formation rates coupled with high-revenue entrepreneurs.
3. Massachusetts. Like New Jersey, a concentration of high-revenue entrepreneurs, plus strong innovation in one of the nation’s leading states for higher education.
2. Washington. Very strong rates of establishment growth and patent activity.
1. New York. Scored high in every category, improving dramatically in percentage and per capita establishment growth and scoring high in gross receipts per capita.
Curious about which franchised businesses are thriving in these states and which systems have availability? Start a conversation with us about your options – there has never been a better time to become a business owner!