In more good news for Georgia, and hopefully its economy, a new study from WalletHub ranks Georgia 8th overall for “Best States to Start a Business.” The study used three main factors to determine the overall ranking – business environment, access to resources and business costs – and Georgia fared well in all three.

Georgia finished just behind Colorado and ahead of Missouri. Some states scored particularly high on one or two factors but suffered from a poor ranking in the third category. Colorado’s business costs ranked 32nd, otherwise it could’ve scored higher overall. Georgia was ranked 13 for business environment, 14 for access to resources and 10 for business costs.

Georgia was also ranked highly for availability of human capital, coming in at 5th, behind West Virginia (not exactly known for its booming economy). Debi Kleiman, the Executive Director of the Arthur M. Blank Center for Entrepreneurship at Babson College, talked a little about what it takes for states to improve their environment for startups. “I think corporate tax rates play a role, but more importantly, young companies need a complete entrepreneurial ecosystem in order to thrive. So without that, all the tax breaks in the world aren’t going to help. I think, instinctively, companies know that they need this kind of environment to succeed, and if they don’t know it, they certainly learn quickly that they need it,” said Kleiman.

A recent report from CB Insights backs up Kleiman’s suggestion. The report looked at the most common reasons why startups fail. The top three reasons reported from failed startups were “not the right team”, “ran out of cash” and “no market need.” The cash one is often thought of as the biggest problem for startups but those other two are vital. And those other two can be helped by having the right environment.

Atlanta is already home to a couple major startup hubs or incubators, the ATDC and Atlanta Tech Village, as well as numerous others, such as Switchyards. Atlanta Tech Village is the country’s 4th largest tech hub and the ATDC has been grooming young companies since the 1980’s. Just last month, the ATDC announced a new $1 million retail-focused initiative. The Mookerji Foundation is financing the project and it is intended to fund the program for five years. The retail industry is in the middle of a changing time as internet sales leech more and more revenue from brick and mortar stores. ATDC General Manager Jennifer Bonnett said, “The retail landscape has undergone a tumultuous shift in the last few years and retailers — from the national chains and department stores to the mom and pop shops on Main Street — are all looking for innovative technologies that help them remain competitive, stay engaged with their customers, and improve the bottom line.”

Earlier this year, a number of of Atlanta’s top companies, including Home Depot and Delta Air Lines, announced an incubator called Engage that will start off with a $15 million investment. Participants in the Engage program will go through a 3-month program – offered twice a year. Founders will work closely with startup veterans and Fortune 1000 executives to “refine go-to-market strategies and create scalable market opportunities.” The deadline for applications for the Engage program is this weekend.

To see the full report from WalletHub – https://wallethub.com/edu/best-states-to-start-a-business/36934/

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