Survey: Montana best state for hiring at small businesses

Montana is the state with the most impressive talent pool for hiring employees at small businesses, according to a new study from global bank debit network GoCardless.

The study examined 12 key, publicly available data streams — from authoritative bodies such as the Small Business Administration and the Bureau of Economic Analysis — to rank all 50 states (and the District of Columbia) in terms of how favorable they are for small business owners.

The results suggested Montana boasts the greatest talent pool in the country when it comes to staffing small businesses.

The GoCardless team looked at a multitude of indicators to reach this conclusion. For instance, they noticed Montana small businesses hire a much greater proportion of employees than small businesses account for in other states.

Nationwide, an average of 51.5% of employees are hired by small businesses. In Montana, that rate is higher than in any other state, at 65.3%.

Additionally, there are 31,899 small businesses registered in Montana, according to the survey, and they employ a total of 245,758 employees.

Other employment indicators also speak to the strength of Montana’s small business workforce. Educational attainment and the quality of education are both above the national average in Montana, with a state score of 53.37 compared to the national average of 49.54.

Overall, Western states, particularly in the Pacific Northwest, performed the best in the GoCardless survey. In addition to Montana, the top rankings in each category went to Wyoming, the best state to start a small business; California, the state with the best business landscape; and Washington, the state with the largest recent economic growth.

The study also looked at the most favorable tax rates by state, and noted Montana, where there is no state sales tax, is among the best in that regard.