Entrepreneurs See Delaware As The Destination For Small Business Opportunities
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Delaware gained the nation’s top spot in the Shopify Entrepreneurship Index as it received the greatest economic contribution from Shopify entrepreneurs when compared to other states in 2022.
In order to determine the states where entrepreneurs have the greatest overall impact, Shopify, in collaboration with Deloitte, looked at a number of metrics, including the number of jobs supported, the impact on the gross domestic product (GDP), and the business activity of Shopify merchants.
Additionally, the state is adjacent to many East Coast metropolises, such as Philadelphia, Washington, D.C., and New York, which might have contributed to its increased appeal to business, according to Shopify President Harley Finkelstein
Delaware as the tax haven
Delaware is home to fewer than 1 million people, but more than 60% of Fortune 500 companies are incorporated in the state. It is seen as friendly to corporations because of the business-friendly corporation law and pro-business environment that the state offers.
More than a million businesses, including half of all US firms and two-thirds of Fortune 500 companies, publicly traded companies, and most technology startups are incorporated in Delaware.
Delaware’s economic activity was estimated by the index to have increased by more than 20% annually in 2022. The number of jobs directly created by businesses increased by 23.6% as well. Macro economically, real GDP increased by 2.1% annually in 2022, which Finkelstein claimed is comparable to the GDP growth rate in the United States for that year.
Delaware V/S the rest
According to the data, Wyoming came in second place, then California, Montana, and Utah.
According to Finkelstein, Wyoming “offers enticing benefits for small business owners,” much like Delaware does. One is the absence of the state corporate income tax and the cheaper costs. As a result, it is less expensive to establish a limited liability company (LLC) in Wyoming than it is in many other states.
Wyoming had double-digit growth in every indicator, including a gain in exports of 31.7% over the previous year and an increase in the number of jobs supported overall by 12.1%. According to figures from around the country, the state’s employment rose by 2.1%, while personal income rose by an average of 2.9%.
California came in third place and demonstrated consistent development in the majority of criteria because it “offers many networking opportunities.” Additionally, Finkelstein noted, “it offers a diverse range of industries and is home to many investors for those business owners seeking funding.”
Expanding businesses and rising GDP
According to the results revealed by the data, there were 9.2% more businesses expanding in 2022 than there were in 2021, and there were 8% more direct jobs produced annually. According to Finkelstein, the state’s employment increased by 2.1%, while personal income climbed on average by 0.4%.
Real GDP rose by 0.4% in 2022 on an annual basis on a macro level.
The rating demonstrated how tough these people are in the face of a barrage of macroeconomic difficulties, such as persistent inflation.
Outlook
The current business environment, which is difficult for most, is actually being used to their advantage by entrepreneurs. With risk of job losses looming around, many in the US are taking the entrepreneurship route, trying to venture into businesses that look lucrative. Their attempts to launch a business gets a fillip when launching a firm gets easier, with less capital required, and less tax burden.
Frank Vella, CEO of the web marketing firm Constant Contact, said, “ new business establishments soar during leaner economic times.” He added that there are currently “more opportunities to succeed” with more support and resources available to start a firm, from financing to marketing.
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Genovese D. Entrepreneurs head to Delaware for small business opportunities, report says. FOXBusiness. Published May 14, 2023. Accessed May 19, 2023. https://www.google.com/url?q=https://www.foxbusiness.com/lifestyle/entrepreneurs-head-delaware-small-business-opportunities&sa=D&source=docs&ust=1684491475108185&usg=AOvVaw1ItuFAtIcwiH6TgPTEIijx
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Stangler D. Who’s On Top Of The New Shopify Entrepreneurship Rankings? Forbes. Published May 16, 2023. Accessed May 19, 2023. https://www.forbes.com/sites/danestangler/2023/05/16/whos-on-top-of-the-new-shopify-entrepreneurship-rankings/?sh=315e1b083dd0