While many small business owners might feel otherwise, a recent national study from WalletHub found that Ohio has the 8th most pandemic-proof small businesses.
The study compares states across three key dimensions:
- Impact & Access to Resources
- Small-Business Financial Conditions
- Business Environment & Workforce Support
Eleven metrics were used to create rankings across the three dimensions. Metrics measured factors like share of small businesses operating in highly affected industries and share of small-business employees operating in highly affected industries among total small-business employees, the two most weighted metrics in the study, to small business credit conditions, share of small businesses that received funding from the PPP and more.
The state’s rankings saw some wide swings. Ohio scored #1 in the ‘Impact & Access to Resources’ metric and landed near the top of the pack at #6 in ‘Small Business Financial Conditions,’ but was #49 in ‘Business Environment & Workforce Support.’
The Business Environment & Workforce support ranking measured a state’s small business friendliness grade based on a survey of owner-operators nationwide and how they perceived local, state and federal governments were responding to the pandemic, as well as WalletHub’s stats on where unemployment claims are recovering the quickest. Ohio had a strong small business friendliness score, but ranked at #50 on States Whose Unemployment Claims are Recovering the Quickest.
Rankings in which the state scored well included:
- 5th – Share of Small Businesses Operating in High-Risk Industries (44.14%)
- 2nd – Share of Small-Business Employees Operating in High-Risk Industries Among Total Small-Business Employees (41.56%)
- 16th – Business Vitality
- 15th – Average Annual Federal Small-Business Funding per GDP
- 10th – Small-Business Credit Conditions
Pennsylvania took the top spot, with Arkansas, Missouri, North Dakota, Minnesota, Illinois and Michigan ranking respectively above Ohio.
For more information and the methodology behind the study, click here.