Hoosiers Know How to do Business!
Starting a new business is exciting, but it also comes with its fair share of challenges. It can be so overwhelming that many prospective entrepreneurs are deterred from beginning the process. However, simple decisions can radically simplify the process of starting a successful business.
One of the most important decisions you’ll make as a business owner is where you choose to headquarter your locations. Selecting the area to start your business is crucial to your success because it can impact your business in various ways.
Here’s how setting up shop in Indiana will grant your new business long-term success.
The Evansville Region is a great location to start a business in Indiana. With a population of over 350,000 people, it’s located in the southwestern part of the state, on a small curve of the Ohio River.
The Evansville Region has a low cost of living compared to other cities in the region, which can be a significant advantage for businesses just starting. The cost of living in the Evansville Region is 22% lower than the national average, which means that you can stretch your budget further and invest more in your business.
The Evansville Region is also home to a highly-skilled and educated workforce. Within the city, several universities and colleges, including the University of Evansville and the University of Southern Indiana, provide a pipeline of talented graduates for businesses in various industries.
It’s also strategically located near several major metropolitan areas, including Indianapolis, Louisville, and Nashville, making it an excellent location for businesses transporting goods or services to other parts of the country. If you’re a producer of goods, you can benefit from reduced transit times and costs thanks to its convenient proximity to other metropolitan hubs.
The Evansville Region offers a variety of business incentives to help companies get off the ground. The Economic Development Coalition of Southwest Indiana provides various programs and incentives to businesses that create jobs or invest in the region.
Starting a new business can be daunting, and the statistics can be discouraging. After all, starting a business from scratch can feel like throwing your hard work to the wolves. And your concern is valid. According to the Bureau of Labor Statistics, approximately 20% of new businesses fail in their first year, and 50% fail by their fifth year.
While the nationwide average for year-to-year business survival rate is 80%, Indiana boasts an 83.6% business success rate. That 3.6% may seem small, but it can make all the difference when you launch your own new business.
Many entrepreneurs have recognized and capitalized upon this success potential. For example, according to the US Small Business Administration, there were 529,456 small businesses in Indiana in 2021, accounting for 99.4% of all companies in the state.
Entrepreneurship is so dominant in the economy that Indiana's small business sector employed 1.2 million people in 2021, which accounts for a whopping 45.9% of the state's private workforce.
The state's low cost of living and affordable real estate make it an attractive destination for entrepreneurs looking to start a business. And Indiana continues to help put incentives in place to foster a supportive environment for new companies.
Business friendliness describes a state's policies and regulations that impact the ease of doing business. However, it’s important to remember that not all states are committed to the same level of business friendliness.
Business-friendly states are those that prioritize policies and programs that support businesses of all sizes. These policies can include tax rates, access to capital, workforce development, and support for entrepreneurship.
Indiana understands business, commerce, and entrepreneurship's vital role in the economy. As a result, they are intentional about decreasing legislative burdens and supporting initiatives that boost business.
A business-friendly environment can also include a supportive community and access to resources, such as networking events and training programs. When looking for a place to start a business, it's essential to consider these factors to ensure the best chances for success.
Remember that the most business-friendly states tend to have lower taxes, streamlined regulations, and robust support systems for businesses of all sizes. Indiana’s business-friendly environment directly results from various policies and programs designed to support entrepreneurs throughout every stage of their business.
There are several reasons why Indiana ranks as the best state for business. From tax incentives to economic growth statistics, here’s the breakdown of why you should choose Southwestern Indiana for your business.
The state offers a range of incentives to businesses that choose to locate in Indiana, including tax credits, training grants, and funding for infrastructure improvements. In addition, the Indiana Economic Development Corporation (IEDC) assists with site selection, workforce development, and other vital aspects of starting and growing a business. The state has also streamlined the process for obtaining permits and licenses, and it offers a variety of resources to help companies to comply with regulations.
Tax rates also play an integral role in helping businesses thrive, no matter the state of the economy. Indiana has some of the lowest taxes in the country for businesses. The corporate income rate is 4.9% (as of July 2021), and the state sales tax rate is 7%. Indiana also has a variety of tax credits and incentives available to businesses that create jobs or invest in the state.
Are you dreaming of opening your own business but feeling overwhelmed by the first steps? The Indiana Small Business Development Center (ISBDC) can be your guiding light. They offer free, confidential consulting from experienced professionals, helping you navigate crucial aspects like business planning, market research, and financing. With the ISBDC by your side, you'll gain the confidence and know-how to turn your entrepreneurial dream into a thriving reality. The Evansville Region is home to the #1 performing SBDC in the state, offering free or low-cost services for businesses at any stage.
Indiana's strong economy is another factor that makes it an attractive destination for businesses. The state has a diverse array of industries, including manufacturing, agriculture, and service. The manufacturing sector is particularly strong, thanks to several major auto manufacturers such as General Motors and Subaru. New businesses can also benefit from the state's central location, which makes it a key transportation hub with access to major highways, rail lines, and waterways.
Indiana is also home to a highly skilled workforce. The state is home to several top-ranked universities, including Purdue University, Indiana University University of Southern Indiana, and the University of Evansville. There is also a robust vocational education system, with programs that prepare students for careers in various technical and hands-on industries.
Before you dive in head first, you should know a few things about starting your business in Indiana that can help get your business off to a solid start.
Indiana has a robust network of incubators and accelerators, which can provide support and resources to help your business succeed. Unfortunately, not all states are as committed to supporting new businesses through economic initiatives.
The state also has many resources available to help businesses access capital. Indiana offers several programs to help companies access funding, including tax credits, grants, and low-interest loans. In addition, the Indiana Economic Development Corporation provides various loan and grant programs, and the state also has a network of community development financial institutions (CDFIs) that provide financing to small businesses.
Indiana's regulatory environment is relatively business-friendly, with streamlined processes for starting and operating a business. However, you should remember that it's still important to understand the state's regulations and requirements to ensure compliance.
Many cities have specialized nonprofit groups to help walk you through the legal details of starting your business. Take advantage of these low-cost (or even free) services whenever possible.
Indiana is also home to several robust industry clusters that can be attractive to businesses. These include the life sciences, advanced manufacturing, logistics and transportation, and information technology sectors.
