Rhode Island Ranks as Worst State in U.S. to Start a Business
GoLocalProv Business Team
Rhode Island Ranks as Worst State in U.S. to Start a Business
Everything from one of the state's top award-winning restaurants announcing that it is closing its Rhode Island location and moving to Connecticut to the sale of the beloved Old Canteen restaurant. It is being transformed into a wiener joint.
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Unemployment in the state is up 27% year over year.
Those examples were anecdotal.
Now comes a new study that ranks Rhode Island as the worst to start a business.
With around 1 in 5 new businesses failing within the first year and inflation making things even more difficult, the personal finance website WalletHub on Monday released its report on the Best & Worst States to Start a Business in 2025, and Rhode Island came in dead last.
"It's crucial to establish your business in a state that will maximize your chances of success. The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base if you’re operating locally,” said Chip Lupo, an analyst for WalletHub.
WalletHub compared the 50 U.S. states across 25 key indicators of startup success. The data set ranges from financing accessibility to labor costs to office-space affordability.
For its top three overall categories, Rhode Island ranked last for “business environment;” it ranked 40th for “access to resources” and “business costs.”
The top three states in WalletHub’s ranking were Florida, Georgia, and Utah.
Just “ahead” of Rhode Island at the bottom of the rankings were Connecticut (#49) and New Jersey (#48).