Oklahoma’s Best Place to Start a Business in 2023
Forbes is not a big fan of starting a business in Oklahoma.
In a list meant to elicit groans in some parts of the country, ego boosts in others, and plenty of data misunderstanding: Oklahoma is ranked 42nd in “Best States to Start a Business in 2023.”
But how accurate is a list like that anyway? What factors are left out? Is Oklahoma, birthplace of companies like Continental Resources, Love’s Travel Stops, Sonic, Paycom and more, really such a bad place to start a business?
Not exactly, according to local entrepreneurs and venture capitalists familiar with the process of launching new businesses in Oklahoma.
Forbes based its ranking on “18 key metrics in five categories” to determine which states are better or worse. The five broad categories include business costs, business climate, affordability, economics, and workforce.
In three of the five categories, Oklahoma actually scored in the middle of all states (business costs, business climate, and economy). But a poor showing on affordability and a slightly below-average score on labor force rankings plunged the state.
There’s certainly work to be done, Erika Lucas said, but she sees little merit in lists like the one produced by Forbes.
“I don’t think entrepreneurs or established businesses look at these lists and then say, ‘Oh no, I don’t want to be in Oklahoma,'” Lucas said.
Lucas is the co-founder of StitchCrew, a company dedicated to linking entrepreneurs with resources and networks to further boost their businesses. Among StitchCrew’s first projects is Thunder Launchpad, a business “accelerator” workspace started in partnership with the Oklahoma City Thunder basketball team in 2018.
Now he’s working on a local project to help boost seven-figure income Latino businesses.
Funding remains a problem for Oklahoma businesses and entrepreneurs
Oklahoma scored lowest for affordability, according to Forbes. It’s been a problem for years, according to people like Lucas, but work is underway to improve the situation.
Nathaniel Harding of Cortado Ventures has been working with his firm to raise capital to invest in many Oklahoma-based companies. He has seen great progress in recent years, but there is still a long way to go.
“Compared to just a few years ago, there is about 10 times as much organized private capital in Oklahoma investing in startups,” Harding said. “However, compared to other well-developed emerging economies, we still have 10 times more to go.”
Other firms, such as Gener8tor, Boyd Street Ventures, i2E, OLSF and Techstars are helping expand equity investments within the state, Harding said.
He doesn’t think Oklahoma’s current low ranking in the category should deter a potential entrepreneur from launching in the state. With more growth each year, he feels the time is more opportune than ever to start a business in Oklahoma.
“Building your startup here means you have massive tailwinds and are part of America’s next great growth story in tech startups,” Harding said.
The workforce remains a challenge for entrepreneurs
Oklahoma’s workforce was the other category that lagged behind the national average, according to Forbes.
The publication measured quality based on the percentage of college graduates in a state’s workforce. Depending on the type of work required for a new business, it can be challenging for entrepreneurs.
It was for Sean Akadiri.
Akadiri founded AgBoost, a technology company that allows ranchers to track cattle data, including health and genetics, using DNA, in 2013. But finding skilled workers was tricky.
“For me, it was difficult because I would have to look for software developers out of state,” Akadiri said.
Oklahoma, which often boasts relatively low unemployment, has historically struggled in some industries that require advanced degrees, including aerospace.
However, for many new business owners, the workforce is a next-generation type of problem. Lucas told The Oklahoman, and Akadiri agreed, that entrepreneurs are often lucky to employ even a couple of people at the end of the first year or two.
Oklahoma offers something that doesn’t appear in the stat book
Akadiri launched her business despite not being from the area (she grew up in Nigeria) and knowing relatively little about the agricultural industry.
“I don’t like cattle… I just had an idea and was looking for different ways to execute it,” Akadiri said.
The environment was tough for many reasons, but he mentioned one reason that Oklahoma was a good place to start a business that Harding and Lucas also talked about.
Oklahoma offers a tremendously collaborative workspace, filled with people willing to help others.
“It was easy for me to connect with the right people,” Akadiri said. “Oklahoma was really great for me in terms of connecting with ranchers and operating in that space.”
“One of the things that makes Oklahoma unique for entrepreneurs is how accessible people are to help them on the journey,” Lucas said. “You’re one degree apart (away), and you can usually get someone to meet with you. That’s one of our key differentiators, especially compared to larger markets.”
Now that she has run her business for several years and it continues to grow, Akadiri feels that she is now at the point where she can help others.
“There is still work to be done. This state is still a bit slow compared to other states,” Akadiri said. “If I had to do it over again, I wouldn’t do it any other way, but it’s also given me a good perspective on how to help others succeed.”