JACKSON, Miss. ( WJTV ) – Mississippi’s economy may have had recent economic development , but a recent report reveals that the state’s economic sector may not be good for small business.

According to a May report from LLC Geek, Mississippi is the second worst state for small business. The business website sites the state’s ranking in workforce availability and limited support in its business environment. Additionally, the LLC Geek report said the state’s poor internet speed and infrastructure create barriers and hinder efficiency for businesses.

Data from the U.S. Bureau of Labor Statistics reveals that Mississippi has the nation’s lowest labor force participation rate. According to the Mississippi Secretary of State’s website , Mississippi has the highest regulatory burden among Southern states. A Justice Institute report shows that the state loses nearly 13,000 jobs yearly due to licensing regulations.

Additionally, 23% of Mississippi households lack internet access. WalletHub recently ranked the state among the hardest places to work from home nationwide. The state also has the lowest share of its population working from home, yet has the highest share of potential telecommuters in the country.

Other factors in LLC Geek’s ranking include the Magnolia state’s above-average inflation and low GDP figures. Mississippi had the second-lowest GDP in the South in 2022 and 2023, according to the U.S. Bureau of Economic Analysis (BEA). BEA data also showed that between 2022 and 2023, the Magnolia state’s GDP grew at the second slowest rate in the South.

To help address these issues, various entities have instituted initiatives to promote change. The secretary of state’s Tackle the Tape initiative helps to attract businesses to Mississippi and prevent further job loss. The Mississippi Department of Agriculture and Commerce created Genuine MS to make it easier for consumers to find and buy products created or produced by Mississippi farmers and entrepreneurs. The federal government recently allocated more than $1.2 billion to the state to help ensure all Mississippians have affordable, reliable high-speed internet.

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