WalletHub: New Jersey is 2025’s 3rd worst state to start a business

NEW JERSEY – New Jersey is 2025’s 3rd worst state to start a business, according to a study done by WalletHub.

With around 1 in 5 new businesses failing within the first year and inflation making things even more difficult, the personal-finance website WalletHub Monday released its report on the Best & Worst States to Start a Business in 2025 to help people maximize their chances of success by starting in the right location.

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.

Starting a Business in New Jersey (1=Best; 25=Avg.):

• Overall Rank for New Jersey: 48^th
• 37^th – Avg. Growth in Number of Small Businesses
• 45^th – Office-Space Affordability
• 49^th – Labor Costs
• 35^th – Avg. Length of Work Week (in Hours)
• 43^rd – Cost of Living
• 33^rd – Industry Variety