Best States to Start an Information Business in 2026
NAICS 51 covers publishing, broadcasting, telecommunications, data processing, and online services. It is the smallest of our tracked sectors by establishment count and the most concentrated geographically. North Dakota leads at 28.8 entry risk; California sits at 56.6. Data suppression in 5 states (Connecticut, Idaho, Maine, Vermont, Wyoming) means wage pressure scores there reflect a neutral default.
The 10 strongest states for new information-sector entrants
These states share a profile: technical talent depth not yet priced into oversaturated wage levels, retention rates that hold up through tech hiring cycles, and demand fundamentals tied to corporate digital spending rather than venture-funded volatility.
Information Sector Entry Risk: Top 10 States (2026)
| Rank | State | Risk Score | Classification |
|---|---|---|---|
| #1 | North Dakota | 28.8 | low |
| #2 | Arkansas | 30.0 | moderate |
| #3 | Alaska | 31.5 | moderate |
| #4 | Pennsylvania | 31.8 | moderate |
| #5 | Alabama | 32.1 | moderate |
| #6 | Kentucky | 32.6 | moderate |
| #7 | Montana | 33.2 | moderate |
| #8 | South Dakota | 33.6 | moderate |
| #9 | Virginia | 36.2 | moderate |
| #10 | Missouri | 36.8 | moderate |
51-state average: 43.6. Average annual wage in the information sector: $111,315, well above the national private-sector mean. 294,668 information establishments tracked.
Why talent density rules the ranking
Information businesses, whether traditional publishing, telecom infrastructure, or data processing, depend on scarce technical and editorial talent. The states that score well are the states where that talent pool is deep enough to staff a new firm, but not so concentrated that wage competition with incumbents (Google, Meta, AT&T, Comcast) prices new entrants out of viable hiring.
North Dakota's 100th-percentile retention reflects the dynamics of mid-size markets where new information firms compete for talent against regional employers rather than against the FAANG-tier wage ladder. The retention gap between top-10 and bottom-5 states in this sector is among the widest we track.
Saturation matters less here than talent availability. The information sector has fewer establishments per capita than most other major sectors, which means saturation is rarely the binding constraint on new entry. The binding constraint is whether your specific subsector (software, telecom, content, data services) has a local talent pool sufficient to staff for 24+ months without commuting in remote workers.
The five hardest states for information-sector entry
These states post elevated risk for one of two reasons: the largest tech-and-media concentration drives wage levels and saturation past what new entrants can absorb, or the state has too thin a talent base for any new firm to build hiring momentum.
Information Sector Entry Risk: Bottom 5 States (2026)
| Rank | State | Risk Score | Classification |
|---|---|---|---|
| #51 | California | 56.6 | high |
| #50 | Nevada | 56.3 | high |
| #49 | Washington | 55.7 | high |
| #48 | Hawaii | 55.2 | high |
| #47 | Connecticut | 54.5 | elevated |
New information firms in these states face one of two pressures: hiring against incumbents with deeper compensation budgets, or trying to recruit into geographies where the talent pool simply does not support a fully-staffed operation. Both produce 5-year survival rates well below the top-10 norm.
How to read the score
Information sector entry risk weights are: retention 30%, momentum 20%, volatility 15%, saturation 15%, wage pressure 20%. Wage pressure is weighted higher than in most sectors because labor costs in information are 65–75% of operating budget for most subsectors. See the full methodology.
Software publishing, telecom carriers, broadcast media, and data processing services operate on dramatically different cost structures within the same state. State scores set the macro frame; metro reports break out NAICS 4-digit subsector data.
Where to read more
- All 51 states for the information sector with full metric tables.
- Information sector in North Dakota (#1) with metro breakdown.
- Information sector in Arkansas (#2).
- Information sector in Alaska (#3).
- Information sector in California for the toughest example.
- Methodology with retention, momentum, and wage pressure formulas.
- Data sources from U.S. Census BDS and BLS QCEW.