Fit Small Business, a New York-based online publication serving small business owners, was out Tuesday with a list of the best places for businesses, and presumably people, to get through a recession.
The conclusion: The Midwest is best. The Plains States overwhelmingly appear to have what it takes to shield your business from being swept away into the next financial storm. California? Dead last.
The list was compiled from publicly available data from sources such as the Bureau of Labor Statistics, Bureau of Economic Analysis, and the Federal Deposit Insurance Corporation and analyzed it in order to determine the most resilient states to weather an economic crisis.
“We based our analysis on 10 distinctive categories that influence a state’s ability to withstand an economic downturn,” says David Waring, Editor-in-chief, Fit Small Business. “From this list, we can strongly predict from where your business is located whether it will be able to survive the next recession.”
In ranking each state, Fit Small Business selected 10 categories that significantly influence a state’s ability to withstand an economic downturn. These categories include:
1) State’s existing debt level
2) Unemployment rate
3) State’s fiscal balance (deficit vs. surplus)
4) Stability of housing market
5) Dependence on exports
6) Economic diversity
7) Per capita savings/checking account deposits
8) Per capita credit card debt
9) State income tax rate
10) State’s GDP levels during 2008 recession