Wisconsinites who are interested in creating a startup might wonder what the conditions in the state are.
This article will go into detail discussing the business environment of Wisconsin and relating it to startups and how easy it would be to establish one. We will also talk about some of the most successful startups in Wisconsin to boost the confidence of our readers who are planning on doing the same.
Preparing for a Startup
The first step, that should be taken by everyone who is dreaming of having a successful startup, is to research and examine the local private sector.
This includes, but is not limited to, exploring the business environment by looking at the working conditions, local laws and regulations, or simply said, to examine the freedom of business in the state and area you are planning on establishing the startup.
The next step is to conduct market research to find out whether your business would be profitable in the area of your choice. This can be costly, but there are relatively cheap options such as online surveys that don’t offer pay for participation, although those might not yield the response rate necessary for a holistic market research.
These are only few of the steps undertaken in preparation for starting a startup, so we advise you to check special guides that can help you prepare further, as this article is going to mainly explore the first two steps in relation to Wisconsin.
The Business Environment in Wisconsin
Let’s now explore the business conditions in the state of Wisconsin. We can start by looking at some numbers.
According to figures presented by the Cato Institute, Wisconsin ranks 14th (out of the 50 states) in terms of economic freedom. The Cato Institute, a leading public policy research organization, calculated Wisconsin’s economic freedom based on its fiscal and regulatory policy, including state and local taxation, among other things. However, this ranking relates to both personal and business freedom.
If you were to look strictly at business freedom, the numbers suddenly change. In a recent study conducted by WalletHub that looked at the best states to start a business, Wisconsin ranked 28th overall, as well as 43rd in the business environment section and 19th in the access to resources section.
These numbers are worrying. Wisconsin didn’t rank in the top 10 for any of the categories WalletHub used such as business environment, recourse access, labor cost, human capital availability or growth.
Still, in terms of regulations that benefit business, Wisconsin ranks 9th which makes us hopeful that more prospective business owners might choose the state to establish a startup.
Additionally, Wisconsin ranks 7th for access of SBA (small business administration) loans which can definitely boost a new startup. However, it should be noted that SBA loans are usually granted to businesses with some experience in the industry, so it might be difficult for startups to receive them (micro-SBA loans are an option though).
Furthermore, depending on what your startup entails, you might receive funding from the state of Wisconsin or the federal government. Renewable energy startups, for example, have received such in the past. This is why we advise you to research carefully before you decide on your product or service as you might be eligible for government funding.
Wisconsin also has policies that advance emerging industry, say artificial intelligence, so the climate is generally business-friendly. Let us also not forget that Wisconsin has a flat corporate income tax rate of 7.9%, and the cost for business tax registration is $20, while the cost for incorporation is $100.
Successful Wisconsin Startups
In this section, we will introduce you to some successful startups from Wisconsin to give you a motivational boost:
- Type One Energy (est.2019) – Perhaps one of the most famous startups to come from Wisconsin, Type One Energy is a company aiming to provide affordable fusion power to consumers. Created by a leading team of fusion scientists and business experts, Type One Energy has already secured billions in funding, including a $50 million package from the state of Tennessee’s Nuclear Energy Fund to establish their headquarters and future reactors there.
- Polco (est.2015) – This Madison-based startup means to serve communities everywhere by giving them a platform that allows their voices to be heard by government officials. Elected leaders can use Polco to collect and analyze feedback by residents which they can use to shape policies that benefit their constituents.
- EnsoData (est.2015) – Ensodata is a healthcare company that uses artificial intelligence and machine learning to better diagnose health conditions and provide an affordable solution to providers and patients. Its subsidiary, EnsoSleep, received FDA clearance in 2021 to score and analyze sleep studies.
- Elephas (est.2020) – Elephas is a groundbreaking startup with the commendable goal to improve cancer treatments by going away with the current approach of trial and error. Using the ex-vivo technology suite, Elephas means to study how live tumor fragments respond to immunotherapies. This allows for real-time characterization of tumor samples which could consequently lead to therapy tailored to the needs of the individual patient, and hopefully accelerate cancer drug development.
Conclusion
Overall, Wisconsin might still have a lot to improve in terms of its business environment to boost participation in the private sectors, but Wisconsin-based startups such as Elephas and Type One Energy show us that it’s absolutely possible to start a successful business in the Badger State.
