The states where businesses perform the best 

New research has discovered the states where business owners are most confident about the future, with South Dakota taking the top spot. The research also revealed which sectors are most confident about the future of their businesses’ performance. 

Web hosting provider, Hostinger, analyzed survey data from the US Census Bureau to determine the states where business owners are most confident about their current performance, as well as their predicted performance in six months’ time.  

In first place is South Dakota, where 43.5% of business owners predict that their business performance will be above average or excellent in six months’ time. The state has an extremely business-friendly climate, being one of only nine US states that doesn’t charge a state or corporate income tax, allowing businesses to reinvest their earnings to help them grow.  

New Mexico is second on the list, with 43.2% of business owners anticipating above average or excellent performance in the next half year, with only 11% feeling negative. Although commonly overlooked by entrepreneurs, New Mexico is a great place for businesses to thrive, with multiple financial assistance programs including the Job Training Incentive Program and the Local Economic Development Act.  

Third is South Carolina, another state where enterprises can prosper with a low cost of doing business, low tax rates, and low industrial power rates. 37.9% of business owners feel that their company’s performance will be above average or excellent in the next six months, while 37.8% have a positive outlook on their current performance. 

Next on the list is Montana. The state has pro-business tax incentives and a low cost of living, which create a positive economic environment, where 37% of business owners feel that their organizations will perform well in the next six months. If a new company is registered in Montana as an S corporation, they are able to pass through taxation, which allows new companies to thrive. 

Alaska is fifth, with 36.6% of business owners who feel confident that their company will be performing above average or excellent in six months’ time. Similar to South Dakota, Alaska has no state income or sales tax, as well as having improved labour and hiring laws in comparison to other states.  

The state where business owners feel the least confident about the future is Vermont, with just 14.4% predicting above average or excellent business performance in the next six months.  

The research also revealed which sectors in which business owners feel the most confident about the future.  

At the top of the list is utilities, with 45.4% of business owners in this sector who predict that their business will be performing above average or excellent in six months. This sector includes all water, gas, electric, and power companies, which perform well regardless of the economic climate, making it a very profitable business.  

Second is educational services, which includes schools, colleges, and training centers. It is a rapidly expanding sector in which companies can be very successful; 41.3% of business owners have estimated above average or excellent performance in six months’ time, this being a 2.4% increase from the 38.9% who feel confident in their current performance. 

In third place is health care and social assistance, another lucrative industry for business owners, with 40.4% predicting that their company’s performance will be above average or excellent in six months’ time and 41.2% who feel positive about how they are currently performing. The sector is mainly comprised of hospitals, residential care services, and social assistance.  

Fourth is professional, scientific, and technical services. This sector includes a wide range of businesses, including legal representation, engineering, and computer services. 40.1% of business owners feel confident in both the current and future performance of their company. 

Finance and insurance is fifth, with 39.1% of business owners who feel that their business’ performance will be above average or excellent in six months and 38% who are confident in their current performance. This sector includes all businesses who deal with money, credit, and insurance.  

Business owner’s predicted business performance in six months by sector: