NEW ORLEANS – Louisiana, for all its unique charm and savory qualities, has an exodus problem. According to an Atlas Vine Lines study from earlier this year, Louisiana ranked as the number one state for residents leaving nationwide in 2025. The reasons for this are myriad, and assuredly different across economic and social groups; but reversing that trend is also a multifaceted hydra in its own way, with factors such as education, access to public utilities, and insurance costs all contributing. But, while recent influxes of outside investment in the maritime industry indicate a boon in trade jobs so desperately needed across the state, another glimmer of hope can be found in a recently published LendingTree research study that reports Louisiana has the third lowest rate of first-year business failure in the nation.
LendingTree, one of the leading online lending markets, tasked its researchers with investigating the minutiae behind U.S. Bureau of Labor Statistics (BLS) data that indicates that more than one in five U.S. businesses fail in their first year, resulting in hundreds of thousands of new businesses closing. As a part of their findings, the data indicate that Louisiana’s rate of first-year business closures is at 19.6%, well below the national average of 22.1%. While this trend is indeed promising for the state’s future health and retention possibilities, the “reason” for this distinction remains fuzzy, forcing experts like Matt Schulz, LendingTree chief consumer finance analyst and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life, to speculate on the “why” of it all.
“To be honest, a lot of the things that you might think of in terms of things that would really help strengthen a small business’s chances are not necessarily Louisiana strengths,” said Schulz. “It’s not a terribly high credit score state. It’s also not the highest income state, so it’s not as if businesses have just a ton of money to use to keep them afloat and alive, nor does it mean that they’re that their consumer base necessarily has a truckload of money to spend to keep them alive.”
Though the overall economic health of the state and its residents might seem to be counterintuitive to these positive outlooks for Louisiana businesses, those same factors could mean that the businesses that do hurdle the treacherous road to opening their doors already have the resources for long term retention.
“One thing that could certainly be possible is that by not having great credit scores, not having a high income, fewer people take the risk to start that small business,” said Schulz. “This could keep the rate down a little bit in terms of because the businesses that the folks that are jumping in are a little more stable, more ready to go. It’s such a weird time economically, and we need more people being willing to jump into starting a small business, because it’s such an important thing, and maybe this date, Louisianans will be willing to more willing to take the plunge.”
No matter the subsequent cause, a higher success rate speaks well to the efforts of organizations like Jefferson Parish Economic Development Commission (JEDCO), whose mission is to retain economic growth throughout the region. Their programs, including an upcoming food and beverage incubator intended to help support small businesses that are moving out of their kitchen and into a full-scale production space, work to uphold the economy of South Louisiana with an entrepreneurial forward focus. According to CEO Jerry Bologna, these numbers from LendingTree indicate that while there is plenty of work left to do, they must be doing something right.
“It is certainly a signal that what we are doing for startups is working. It’s an absolute source of pride,” said Bologna. “There are so many organizations around the region and state that are providing resources like ours. I don’t think anybody enjoys a story like a homegrown success. In Louisiana, we’re very proud of our local brands, and everybody wants to support them.”
