New York was ranked the eighth worst state to start a business in a recent WalletHub study. The financial advising site’s analysis looked at 26 measures of business costs, access to resources and business environment.
The state’s high cost of doing business, especially for office space, dragged down New York’s ranking. Only New Jersey had higher business costs than the Empire State, the study found.
The bright spot for New York was its access to resources, including educated workers and finance opportunities, where it ranked sixth best in the nation.
No Northeast states ranked among the study’s top 20 states. Texas was No. 1.
In 2016, New Yorkers started more businesses than the national average, but its business closures also outpaced the national average. The number of businesses started in the state outpaced closures, U.S. census data show.
State officials said the ranking uses unfavorable metrics.
Employment, state GDP and the number of businesses founded are more favorable measures of New York-based businesses' success, said John Maggiore, senior adviser to Gov. Andrew M. Cuomo.
In addition, the state offers various programs and incentives to promote New York business.
From 2010 to 2017, the state added more than 57,000 new companies, Maggiore said. "New York is a great place to do business."