By Adam McCann, Financial Writer, WalletHub
Coronavirus dealt a heavy blow to small businesses in the U.S., as countless businesses were forced by state governments to shut their doors for months on end or have heavy capacity restrictions. Though states are gradually reopening and loosening restrictions, around 100,000 businesses shut their doors permanently in 2020. Businesses in some states have been more resilient than others, though.
In order to find out where small businesses have the greatest potential to bounce back after the COVID-19 pandemic, WalletHub compared the 50 states and the District of Columbia across 11 key metrics. Our data set ranges from the share of small businesses operating in high-risk industries to small-business credit conditions and the state’s small-business friendliness.Table of ContentsMain FindingsDetailed FindingsAsk the ExpertsMethodology
Main Findings
States With the Most Pandemic-Proof Small Businesses
| Overall Rank | State | Total Score | Impact & Access to Resources | Small-Business Financial Conditions | Business Environment & Workforce Support |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 74.93 | 4 | 17 | 6 |
| 2 | Arkansas | 70.59 | 5 | 38 | 5 |
| 3 | Missouri | 70.43 | 2 | 36 | 32 |
| 4 | North Dakota | 70.26 | 11 | 18 | 8 |
| 5 | Minnesota | 69.49 | 13 | 20 | 11 |
| 6 | Illinois | 68.66 | 8 | 30 | 20 |
| 7 | Michigan | 68.49 | 17 | 15 | 15 |
| 8 | Ohio | 68.18 | 1 | 6 | 49 |
| 9 | Wisconsin | 67.73 | 14 | 19 | 30 |
| 10 | Kansas | 67.18 | 9 | 42 | 19 |
| 11 | District of Columbia | 66.44 | 3 | 51 | 31 |
| 12 | Louisiana | 66.01 | 6 | 41 | 38 |
| 13 | Iowa | 65.74 | 7 | 44 | 35 |
| 14 | Maryland | 65.39 | 25 | 12 | 18 |
| 15 | New Jersey | 64.81 | 22 | 33 | 7 |
| 16 | Nebraska | 64.22 | 20 | 34 | 10 |
| 17 | Alabama | 62.69 | 15 | 11 | 47 |
| 18 | Indiana | 62.59 | 12 | 29 | 43 |
| 19 | Oklahoma | 62.56 | 10 | 45 | 41 |
| 20 | Kentucky | 62.51 | 19 | 35 | 26 |
| 21 | California | 62.04 | 28 | 9 | 28 |
| 22 | Connecticut | 61.96 | 29 | 21 | 9 |
| 23 | North Carolina | 61.67 | 27 | 27 | 13 |
| 24 | Delaware | 61.36 | 32 | 5 | 12 |
| 25 | Mississippi | 59.89 | 21 | 28 | 42 |
| 26 | Massachusetts | 59.62 | 31 | 2 | 39 |
| 27 | Texas | 59.46 | 16 | 31 | 46 |
| 28 | Tennessee | 57.93 | 23 | 47 | 40 |
| 29 | Oregon | 57.10 | 30 | 25 | 34 |
| 30 | West Virginia | 56.73 | 18 | 48 | 44 |
| 31 | Vermont | 56.72 | 42 | 14 | 2 |
| 32 | New Hampshire | 56.62 | 45 | 3 | 3 |
| 33 | Utah | 55.94 | 34 | 8 | 36 |
| 34 | South Dakota | 55.00 | 40 | 26 | 1 |
| 35 | Georgia | 54.61 | 24 | 37 | 48 |
| 36 | Arizona | 53.46 | 36 | 23 | 25 |
| 37 | Florida | 52.77 | 33 | 43 | 37 |
| 38 | Maine | 52.72 | 41 | 24 | 14 |
| 39 | Wyoming | 52.05 | 35 | 49 | 4 |
| 40 | Virginia | 51.64 | 26 | 13 | 51 |
| 41 | New York | 51.11 | 39 | 40 | 16 |
| 42 | New Mexico | 50.87 | 47 | 16 | 22 |
| 43 | Alaska | 50.37 | 37 | 39 | 23 |
| 44 | Washington | 50.02 | 43 | 22 | 33 |
| 45 | South Carolina | 50.02 | 38 | 46 | 17 |
| 46 | Rhode Island | 49.68 | 48 | 7 | 21 |
| 47 | Idaho | 49.56 | 44 | 32 | 27 |
| 48 | Colorado | 48.16 | 46 | 1 | 45 |
| 49 | Montana | 48.15 | 50 | 10 | 24 |
| 50 | Hawaii | 36.31 | 51 | 4 | 29 |
| 51 | Nevada | 33.21 | 49 | 50 | 50 |
Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.
Ask the Experts
It’s natural for business owners to be worried during the COVID-19 pandemic. In order to provide insight on what they, and governing authorities, can do to weather the crisis, WalletHub turned to a panel of experts. Click on the experts below to read their bios and see their responses to the following key questions:
- What are the most important steps a small business can take to survive in the current conditions?
- Will the Small Business Administration loan programs be effective enough as a response to the COVID-19 crisis?
- What will be the long-term implications to small business as a result of the COVID-19 crisis? Are the current measures enough to mitigate the impact?
- According to a recent survey, 55% of small businesses expect long-term challenges caused by the pandemic. Will the 2021 COVID-19 relief packages aid still-struggling small businesses?
