Indiana may not have the glistening corporate skyscrapers of the Loop, the gilded prosperity of the Magnificent Mile or even as many Fortune 500 headquarters as even the Cincinnati metro, but it usually ranks highly in many business ratings given its business climate.
But the Hoosier state did not fare well in the "Best & Worst States for Your Small Business in 2018" study by ValuePenguin, a consumer data site, largely because Indiana residents aren't starting many new small businesses at the rate other states are, and because the small businesses that have been established aren't exporting many products relative to bigger corporations.
ValuePenguin ranked Montana, Rhode Island, Florida and Maine as the top states in the country for small business. Indiana came in 50th, with Delaware, Mississippi, Washington and Virginia rounding out the bottom five.
"It is worth noting that the following states, except for Washington, also display low productivity growth when compared to the national GDP growth," ValuePenguin said in the study.
Indiana ranked 27th nationally in small business survival rate, 38th in small business creation rate, 42nd in the number of employees working in small businesses, and 45th in exports by small businesses. About 46 percent of Indiana workers are employed by small businesses, which have a 67 percent survival rate in the Hoosier state, the study found.
Neighboring Illinois did not fare much better in the study, being ranked 42nd nationwide for small business.
ValuePenguin Senior Research Analyst Justin Song did the research, using data from the U.S. Census Bureau and the U. S. Small Business Association.