NEW JERSEY — New Jersey ranks as the fifth-worst state to start a business in 2026, according to a new WalletHub analysis that cites challenges including high labor costs and expensive office space.
WalletHub, a personal-finance website, compared all 50 states across 25 measures tied to startup success, including access to financing, labor costs and office-space affordability. The report notes that more than 20% of new businesses fail within a year and that inflation has made entrepreneurship more difficult.
In the rankings, New Jersey placed 46th overall. The state ranked 48th for labor costs and 45th for office-space affordability, according to the study. WalletHub also listed New Jersey at 42nd for cost of living, 39th for average growth in the number of small businesses, 36th for average length of the work week and 32nd for industry variety.
Here are the top 5 best states to start a business:
- Florida
- Utah
- Texas
- Oklahoma
- Idaho
- Rhode Island
- Maryland
- Hawaii
- Connecticut
- New Jersey
For the full report, click here.
