Maryland is one of the richest and most educated states in the country, but it is one of the worst states to start a business, according to a recent study.
the WalletHub study was published Tuesday. He said Maryland ranked 35 out of 50 among the best states for starting a business. Texas was ranked the best state to start a business, while New Jersey was ranked the worst state to start a business.
The study also found that Maryland ranked in the top five states with both the highest labor costs and the most expensive offices. Maryland is the third most educated state, according to the study.
WalletHub based its conclusions on three criteria: “business environment, access to resources and business costs”. The criteria were evaluated across 28 metrics. Each metric was ranked on a scale of 0 to 100. WalletHub used data compiled by US government agencies such as the Census Bureau, Bureau of Labor Statistics, and FDIC, as well as private entities such as the Kaiser Family. Foundation.
So why does Maryland rank below most states in terms of business start-up prospects?
“The regulatory environment is difficult, getting answers is difficult, taxes are higher. It’s just a tough place to operate, ”said Del. Brian Chisholm, R-Anne Arundel, at MarylandReporter.com.
Chisholm, who owns a gym, added: “It’s difficult when you feel like you’re constantly subject to regulatory requirements and taxes. It just isn’t a cheap place to do business.
And legal mandates for paid time off and an above-average minimum wage don’t help the situation, Chisholm said.
“It makes it very difficult to operate in this state. “
Howard County Chamber of Commerce president and CEO Leonardo McClarty, like Chisholm, said cost considerations play a key role in Maryland’s poor ranking in the study.
“I think the rankings certainly point to some of the challenges that those of us who advocate for business have faced over the past number of years. As a state, we are very competitive in terms of talent, proximity to markets and education to name a few. Unfortunately, we are a very high cost state in terms of cost of living, tax and labor costs. Sunbelt states have consistently outperformed other regions in most economic development reports due to labor costs and fiscal policy. Ironically, these same states are often near the bottom in terms of education. “
Senator Cory McCray, of D-Baltimore City, drew a parallel between the study’s findings and the challenges often faced by minority entrepreneurs.
“If it’s that bad for a business to start in the state of Maryland, imagine what it is for black people in urban jurisdictions or surrounding counties to be able to move up.”
McCray, who owns a rental real estate business, said the state can play a constructive role in helping minority-owned business owners succeed.
“I think Commerce has a lot of tools. I think the Ministry of Labor has a significant amount of tools. And we need to make sure they’re on the streets and educate our businesses so they can thrive and thrive. “
McCray stressed that small business ownership “offers a real opportunity” for Marylanders who live in underserved communities and that everyone in society benefits from the equity of the investments.
In addition, more minority-owned businesses should have a better chance of “making it to the top of the list,” McCray said.
Maryland’s economy appears to be lagging behind that of most of the nation’s states with a unemployment of 6.2%, while the national unemployment rate is 5.9%.
This article was originally published on MarylandReporter.com Tuesday, July 20, 2021.