Key Takeaways:

  • Oklahoma's low cost of living, central location, and business-friendly policies make it an attractive state for starting a new business.
  • Key industries to consider include agriculture, renewable energy, tourism, technology, and healthcare.
  • Oklahoma City, Tulsa, Norman, Broken Arrow, and Edmond are top cities for entrepreneurs to consider, each offering distinct advantages.
  • State incentives and resources provide significant support for new businesses, including tax credits and assistance with site selection.

If you're wondering what the best business to start in Oklahoma is, knowing the resources and prospects for the state are important. While the state economy has had setbacks due to drop in oil and gas prices, there are still opportunities for you as an entrepreneur.

Benefits of New Business in Oklahoma

Oklahoma offers an opportune business climate. The state has favorable lands for building and governmental support, as well as business development centers and local chambers of commerce. These centers can offer you professional advice and resources to help you start or grow your business.

Low Cost of Living

One attractive benefit of doing business in Oklahoma is the low cost of living that reduces overhead expenses and makes hiring employees affordable. A major factor in lower living costs is low housing costs. According to Sperling's Best Places, the cost of living in Oklahoma is 84 percent of the national average. Housing contributes to the low cost with Sperling's list stating that national averages are equal to 100, but Oklahoma housing costs ranked 63.

Access to labor

Oklahoma has a low unemployment rate of 4.4 percent, but this is on the rise because of the gas and oil industry downturn. According to Mark Sinatra, CEO of Staff One, in recent years Oklahoma has had one of the lowest unemployment rates in the country, despite the layoffs in the oil and gas markets.

Low Taxes, Simple Regulations, and Incentives

Some benefits of being a business owner in Oklahoma are the easily navigated regulations that make setting up or maintaining a business manageable. Oklahoma has modest tax rates with a corporate income tax of 6 percent and a sales tax of 4.5 percent of a business's gross receipts. The personal income tax has a top marginal rate of 5.25 percent. There is no capital gains tax. In addition to low taxes, there are incentives for entrepreneurs from the state that include the Small Employer Quality Jobs Program, aimed at companies with 90 or fewer employees. This program offers quarterly payments as incentives for starting small businesses. The quarterly payments may be as high as 5 percent of new taxable payroll for up to 7 years. Business owners can attribute qualifying payrolls to their employees' annual salaries if these are least 110% of the average county wage where jobs are located. In addition, a qualifying business in Oklahoma must attain 75 percent out of state sales.

Diverse Business Opportunities in Oklahoma

Oklahoma offers a wide range of industries with significant potential for new businesses. Entrepreneurs looking to capitalize on the state’s strengths should consider these top sectors:

  • Agriculture and Agri-business: With Oklahoma's vast stretches of farmland and favorable climate, agribusiness is a strong contender for new ventures. The state ranks highly in rye and canola production and is known for its cattle industry. New farmers can benefit from tax incentives and site selection assistance.
  • Renewable Energy: Oklahoma ranks among the top states in the U.S. for wind energy production. The state's commitment to renewable energy provides numerous opportunities for businesses involved in wind and solar energy.
  • Tourism and Hospitality: Oklahoma’s rich history and natural beauty make it a hotspot for tourism. Starting a business in hospitality, such as a bed-and-breakfast, tour company, or outdoor recreation service, can be lucrative.
  • Technology and Startups: The tech scene in Oklahoma is growing, with several cities offering incentives for startups. Whether in software development, fintech, or health tech, Oklahoma's low cost of living and business-friendly environment make it an attractive option for tech entrepreneurs.
  • Healthcare Services: The aging population and rural communities in Oklahoma create a demand for healthcare services, including home care, telemedicine, and specialized clinics.

These diverse opportunities, combined with Oklahoma's low operating costs and central location, make the state an ideal place for new businesses.

Issues to Consider for Oklahoma Businesses

While Oklahoma is an ideal market for business because of the low living cost and availability of labor, there are some issues with doing business in Oklahoma. Unlike startup venture capital areas such as Silicon Valley, it is more difficult to access financing for new businesses. Venture capital is not as readily available as markets that are more active, and self-funding is an issue that Oklahoma business owners must consider. Another issue that business owners should think about is the downturn in Oklahoma's energy sector. While a downturn frees up labor for entrepreneurs to tap, it also means there will be less disposable income for potential customers that could harm business profits.

Business Resources

There are numerous resources for business owners in Oklahoma.

  • Oklahoma SCORE
    SCORE is a made up of volunteer business professionals and mentors who give advice to entrepreneurs.
  • U.S. Small Business Administration District Offices
    The U.S. Small Business Administration (SBA) offers grants, financing, consultations, and counseling services. Opportunities to apply for federal government contracts and assistance after natural disasters are available for entrepreneurs.
  • Oklahoma Small Business Development Centers
    Oklahoma has a number of development centers for small business dedicated to supporting the development of small businesses.
  • Center for Emerging Technology and Entrepreneurial Studies (CETES)
    CETES is an incubator organization offering co-working spaces and support services to encourage business growth. CETES provides mentorship, help in obtaining capital, and networking opportunities.
  • Innovation to Enterprise (I2E)
    The I2E is a private non-profit corporation that helps technological entrepreneurs. It collaborates with researchers, entrepreneurs, and other groups to help small businesses to spur innovation.
  • Oklahoma Venture Forum
    The non-profit Oklahoma Venture Forum connects investors and entrepreneurs, helping business owners find venture capital.

Best Cities in Oklahoma for Starting a Business

Oklahoma is home to several cities that provide fertile ground for new businesses. Entrepreneurs should consider the following cities, each offering unique advantages:

  • Oklahoma City: As the state capital and largest city, Oklahoma City is a hub for business activity. It offers access to a skilled workforce, a robust infrastructure, and a supportive business environment. Key sectors include aerospace, biotech, and energy.
  • Tulsa: Known for its thriving arts scene and a strong economy, Tulsa is ideal for businesses in the arts, culture, and entertainment sectors. The city also has a growing tech community and excellent resources for startups.
  • Norman: Home to the University of Oklahoma, Norman offers a youthful, educated workforce and is a great location for businesses focused on education, technology, and research.
  • Broken Arrow: As one of the fastest-growing cities in Oklahoma, Broken Arrow provides opportunities in manufacturing, retail, and healthcare, supported by a pro-business local government.
  • Edmond: This suburb of Oklahoma City is known for its high quality of life and strong local economy, making it a great place for family-oriented businesses and professional services.

Each of these cities offers unique advantages, and choosing the right location will depend on your business goals, industry, and personal preferences.

If you need help with your Oklahoma business decisions, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.