Starting a new business in New Jersey may be tougher than many think.

A new WalletHub report ranks the state 46th out of 50 for startup success.

High labor costs and office space affordability hurt New Jersey's ranking. States like Florida and Utah rank best for small businesses, while Rhode Island is last.

Experts say even with help, 20% of businesses fail in the first year. Inflation makes entrepreneurship even more difficult.