Capital on Tap, a business credit card business, has conducted new research to determine the U.S. states with the highest chance of survival for a small business in a three-year and five-year time frame.

The study analyzed data from the U.S. Bureau of Labor Statistics to reveal the percentage of start-ups that are still active after three years. For a company that opened in 2019, the survival rate is determined in 2021.

Wisconsin has the second highest chance of a small business surviving at 64.93% on a three-year average. The chance of survival in Wisconsin after three years of opening is nearly five percentage points higher than the national average of 60.27% as well as being almost six percentage points higher than the national average for a five-year survival rate (49.21%).

Massachusetts ranked first with a mall business 3-year survival rate of 64.96%.

Rounding out the top 10 are:

South Dakota, 64.03%

Minnesota, 63.97%

Iowa, 63.71%

North Dakota, 63.63%

Pennsylvania,63.51%

Montana, 62.79%

Hawaii, 62.22%

North Carolina, 61.91%

Damian Brychcy, Chief Legal, America and Product Officer at Capital on Tap, said: “Despite the gruelling statistic that 20% of American small businesses fail within their first year, it’s reassuring to see that many states offer a strong environment for businesses to grow.

There are over 30 million small businesses in the U.S., making up an enormous percentage of the economy, and as this number continues to grow, so will innovation and commercial drive. This research should serve as a positive sign to entrepreneurs in the top ten states who are thinking about starting a business.”

Article was first posted in Insight on Business