Arkansas Ranked #3 Best State to Start a New Business

Arkansas was recently ranked among the top states for starting a new business by Forbes Advisor.

The Natural State was named the third-best state for launching a new business with Forbes Advisor calling Arkansas a “highly advantageous state” for new businesses. Out of a possible 100 total points, Arkansas scored a 93 on Forbes Advisor’s ranking criteria. The criteria utilized 18 metrics in five categories, including business costs, business climate, financial accessibility, economy, and workforce.

Forbes Advisor scored Arkansas high for the state’s low business costs. In particular, Forbes Advisor noted that the state’s LLC business formation fee was among the lowest in the United States, which it said “eases the initial financial burden for new businesses.” The Forbes Advisor report also highlighted Arkansas’ low cost of living, which is below the national average.

The Arkansas Economic Development Commission (AEDC)’s Small Business and Entreprneurship Development Division serves as a one-stop shop for small businesses and entrepreneurs in the Natural State. Entrepreneurs and small business owners can find a range of resources on AEDC’s website, from funding opportunities to listings of other entrepreneurial support organizations.

AEDC also has multiple initiatives and programs designed to help small businesses and entrepreneurial ventures succeed in our state. These programs include ARise, 75Strong, and the Arkansas Business Resource Hub.

The ARise program is targeted at tech and tech-enabled companies to help them start and scale up their businesses. The program provides a range of services, including consulting and coaching, capital access navigation, and an advanced subject matter expert network.

75Strong is a new statewide program that trains economic developers and community leaders on entrepreneurship and small business development, particularly in rural and underserved areas. Through the 75Strong program, rural communities and businesses can be connected with resources and support for growth.

The Arkansas Business Resource Hub is a free and centralized listing of organizations that provide resources, programs, and funding to Arkansas entrepreneurs and small business owners. A partnership between AEDC and the University of Arkansas’ Office of Entrepreneurship and Innovation, this platform is powered by EcoMap and is designed to help Arkansas entrepreneurs and small business owners identify, contact, and engage with organizations that can help them grow their companies.