Maine is one of the top 10 best states for women-led startups, according to a new study.

The state, which ranked #10, was highlighted for its good showing in terms of engagement for women entrepreneurs and average income despite having poor access to capital for women entrepreneurs and a high income tax.

The study, compiled by Merchant Maverick, sought to evaluate all 50 states on how women entrepreneurs fare. Its methodology included looking at several metrics, including percent of employer firms led by women, percent of women self-employed in their own business, average income of women self-employed in their own business, total venture capital invested into women-led startups, percent of startups still active after one year, and state income tax rates. Nationwide, just 23.8% of employer firms are run by women and only 18% of all employees are employed at those women-led firms.

Washington and Colorado were the top two states in the survey, while Nebraska and Mississippi were the bottom two.

Maine placed #10 based on metrics such as the average income of women self-employed in their own business, ranking 4th in the country at $75,760, and percentage of women self-employed in their own business, ranking 5th in the country at 2.06%.

However, the study dinged the state for the apparent lack of capital access for venture-backed, women-led startups and having the 41st highest personal income tax tax. According to the study’s research, which appears to have exclusively used Pitchbook for the VC numbers, Maine startups led solely by women have only received $6 million in funding in the past five years.

A note on the VC number. Numbers from national sources such as Pitchbook and the MoneyTree Report are notoriously unreliable when it comes to capturing all VC financing in a state like Maine (the MoneyTree report, for example, won’t include deals involving the Maine Venture Fund). Because of this, MSI plans to compile a 2020 venture financing report that will seek to bring clarity to these numbers.

 

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