High Operating Costs Drag The Garden State Near The Bottom, Despite Strong “Access To Resources” Score
Tuesday, January 20, 2026, 1:00 P.M. ET. 3 Minute Read, By Haylee Ficuciello, Economy & Finance Editor: Englebrook Independent News,
TRENTON, NJ.- Once again, as residents of New Jersey begin another year, a new report reveals New Jersey ranks 46th out of 50 states, the fifth-worst position nationwide, on WalletHub’s newly released list of the “Best & Worst States to Start a Business (2026)”, a report that compares states across a broad set of economic and cost indicators meant to approximate startup success.
WalletHub’s 2026 analysis, published January 19, 2026, compares the 50 states across 25 metrics grouped into three major categories: Business Environment, Access to Resources, and Business Costs. Each metric is scored on a 100-point scale, with higher scores indicating more favorable conditions for launching a new business.
Where New Jersey Lands, And Why;
In the overall rankings table, WalletHub assigns New Jersey:
- Overall rank: 46
- Total score: 35.81
- Business Environment rank: 35
- Access to Resources rank: 8
- Business Costs rank: 50 (worst in the nation)
That split, strong resources paired with an extremely weak cost structure, defines New Jersey’s placement. The state’s last-place ranking in Business Costs overwhelms its otherwise strong showing in Access to Resources, pushing the Garden State firmly into the bottom tier nationally.
WalletHub’s report also highlights specific metrics that help explain New Jersey’s cost burden:
- Labor Costs: Ranked 48th, placing New Jersey among the most expensive states in the country to employ workers.
- Office Space Rent: Ranked 45th, reflecting high commercial real estate costs.
- Educated Population: Ranked 3rd, reinforcing New Jersey’s strength in human capital and workforce quality.
Taken together, the data paints a clear picture: New Jersey offers entrepreneurs a highly educated labor pool and strong institutional resources, but the cost of operating a business, especially labor and space, remains a significant barrier to entry.
The National Picture;
At the top of WalletHub’s 2026 rankings are:
- Florida
- Utah
- Texas
At the bottom of the list are:
- Rhode Island (50th)
- Maryland (49th)
- Hawaii (48th)
- Connecticut (47th)
- New Jersey (46th)
WalletHub notes that starting a business is inherently risky regardless of location. Citing federal data, the report explains that more than one-fifth of new businesses fail within their first year, and roughly half do not survive five years, underscoring the importance of state-level conditions in determining early success.
How The Rankings Were Calculated;
WalletHub’s methodology evaluates states across three core dimensions:
- Business Environment
- Access to Resources
- Business Costs
Each dimension is composed of weighted metrics, including startup density, financing availability, labor inputs, and cost drivers, designed to measure how supportive a state’s overall ecosystem is of new businesses.
While WalletHub does not claim its rankings predict the fate of individual companies, the analysis aims to quantify structural advantages and disadvantages that influence startup survival and growth.
Why The Ranking Matters;
Rankings alone do not tell the whole story. Industry type, location within a state, access to customers, and business strategy all play major roles in determining success.
Still, WalletHub’s bottom-five ranking for New Jersey highlights a persistent challenge: even with strong human capital and access to resources, the cost of doing business in the State makes launching and scaling a company harder than in nearly every other state.
For policymakers and economic development officials, the report identifies a clear pressure point. In WalletHub’s scoring, New Jersey’s Business Costs category is not merely weak; it is ranked dead last in the nation.
Editor’s Note:
This report was written by Haylee Ficuciello, Economy & Finance Editor for Englebrook Independent News, and is based on WalletHub’s “Best & Worst States to Start a Business (2026)”, published January 19, 2026. Rankings, scores, and category breakdowns are drawn directly from WalletHub’s published tables and methodology.
