Swoop Funding ranks states on four start-up business metrics
Tennessee ranks highest in terms of its low operational costs.
Swoop Funding has released its latest report that highlights which states offer the best opportunities for long-term business success in 2025 in four categories:
- Economic environment;
- Business viability;
- Operational costs; and
- Business support.
You are no doubt asking, “How did Tennessee fare?” The answer is that it was second, only behind Mississippi, in terms of best states for operational costs. The analysis revealed that the Volunteer State offers low monthly office rent and agreeable wages, earning a score of 23.97.
“In fact, Tennessee offers the highest wages at an average of $30 per hour, as well as the highest average employer health insurance contributions per employee at $5,833. Businesses in Tennessee compensate for these costs with the lowest average office rent in the country at 16.53 square feet per annum. It’s true that higher wages and health insurance premiums can increase labor costs and potentially impact profit margins. However, greater investment in employee salary and health insurance benefits may help to improve employee retention and satisfaction, which can positively influence productivity,” according to the analysis.
It should not come as a surprise that six of the top 10 states in terms of operational costs are in the South. Arkansas ranks #3, Alabama is #5, Louisiana ranks #6, and Kentucky comes in at #9.
In the other three categories, Tennessee had its highest ranking at #14 in hybrid working (business support), while it placed #18 in business viability, and #40 for economic growth.
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