Industries with Least Risky Business Environments in the US in 2023

1. Medical & Recreational Marijuana Growing in the US

Business Environment Risk for 2023: 2.09

The industry, which includes establishments that grow marijuana for medical and recreational use, flourished over the five years to 2023. Legislative victories over recent years, proved that the cannabis industry is one of the fastest growing industries in the US. Consumer attitudes are also accelerating legalization efforts at the state level. Gallup reports that an estimated 80.0% of US citizens approve of legal access to medical marijuana, while 60.0% approve of full adult use legalization. The growing acceptance of medical marijuana is providing growers and investors with unprecedented opportunities. As a result, industry revenue increased at a CAGR of 30.5%... Learn More

2. Medical & Recreational Marijuana Stores in the US

Business Environment Risk for 2023: 2.45

The Medical and Recreational Marijuana Stores industry, which includes stores that retail medical marijuana (by prescription only) and recreational marijuana, has expanded dramatically over the past five years. The legalization of marijuana for medical and/or recreational purposes and the growing acceptance of legal marijuana use provided operators and investors with unprecedented opportunities. There has been no shortage of demand over recent years, and the cannabis industry has become one of the fastest-growing in the United States.

The legalization of recreational marijuana sales in several states has fueled revenue growth. Furthermore, the licensing of commercial recreational marijuana retailers has caused new entrants... Learn More

3. Ship Building in the US

Business Environment Risk for 2023: 2.89

Shipbuilders design, build and repair ships and other vessels for military and commercial clients. Long project lead times, primarily for defense contracts, have led to a consistent flow of revenue, keeping shipyards busy with work. Defense budgets are set in advance and have increased yearly because of rising geopolitical tensions.

Shipbuilders are protected from foreign competition through protectionist policies like the Jones Act, which prohibits using foreign-built vessels on routes between US ports. While some military shipbuilders receive contracts from foreign countries, commercial shipbuilding is mainly domestic. An increase in US oil and gas production throughout the period has provided a... Learn More

4. Online Tutoring Services in the US

Business Environment Risk for 2023: 3.24

Online tutoring services support students, teachers and professionals at different levels with homework, lessons, assignment help and exam preparation. Revenue is expected to climb at a CAGR of 18.7% over the past five years to reach $2.1 billion, including estimated growth of 14.3% and a profit of 13.1% in 2023.

COVID-19 caused many schools to adopt online learning programs, with mixed results and reactions. Some students thrive with asynchronous work and taking a class at home, while others miss the in-person environment and cannot learn virtually. Both types of students benefit tremendously from online tutoring services, which complement online school... Learn More

5. Wind Power in the US

Business Environment Risk for 2023: 3.30

The Wind Power industry generates revenue from owning and operating wind farms and selling the energy they produce to downstream customers. Government tax credit assistance and state renewable portfolio standards (RPS) have supported the growth of renewable energy. Turbine technology has continued to advance, lowering the cost of equipment and allowing producers to generate high profit. Overall, industry revenue is set to grow at a CAGR of 11.8% to $136.2 billion through 2023, including a 9.6% increase in 2023 alone.

Production tax credits (PTC) offer renewable power generation a tax credit based on the kilowatt-hour of energy produced and have been... Learn More

6. Autonomous Underwater Vehicle Manufacturing in the US

Business Environment Risk for 2023: 3.34

Autonomous underwater vehicle (AUV) manufacturers serve several markets, with the most notable being the US government, more specifically, the Department of Defense (DoD). The DoD is an essential downstream client for AUV manufacturers since they provide manufacturers with stability through contracts. The other two clients are research and oil and gas companies, which use AUVs for more commercial applications. During the period, AUV manufacturers have experienced strong demand from all downstream clients, but government contracts and oil and gas companies stood out the most. 2020 was a roadblock for many industries. However, a massive influx of government funds helped revenue... Learn More

7. Solar Power in the US

Business Environment Risk for 2023: 3.39

The Solar Power industry owns and operates solar power-generating facilities in the form of either photovoltaic (PV) panels or solar thermal power stations. Solar power companies have gone through significant growth, propelled by improvements in the technologies used for electricity generation and government incentives, like the renewable portfolio standard (RPS) targets. RPS legislation requires local utility companies to diversify their portfolio and generate percentages of their energy production through renewable resources. Increases in public support for green energy led to tax incentives and grants to encourage investment in solar power. This has resulted in more companies powering facilities with solar... Learn More

8. Hydroponic Growing Equipment Stores in the US

Business Environment Risk for 2023: 3.45

The Hydroponic Growing Equipment Stores industry has exhibited strong growth through 2023. Increased consumer focus on healthy eating and the benefits of organic produce have aided hydroponic food crop farmers that use this industry's equipment for small-scale, regional growing operations. Produce that is grown hydroponically often meets organic standards, and its contained indoor process reduces the need for genetically modified pesticides. Consequently, industry retailers experienced a spike in demand because of small farms and individuals seeking to set up hydroponic greenhouses to grow organic foods early in the period. Later in the period, demand for growth equipment has skyrocketed by... Learn More

9. Aircraft, Engine & Parts Manufacturing in the US

Business Environment Risk for 2023: 3.51

Airplane, engine and parts manufacturers develop and produce planes, rotorcraft, engines and related components for the civil and defense markets. Despite COVID-19 collapsing demand for air travel and new airplanes, newfound growth followed and a surge of air transit led to strong revenue growth, with revenue increasing at a CAGR of 3.7% to $323.1 billion over the five years to 2023, including a 7.8% increase in 2023 alone.

Strong demand dynamics have supported large commercial aircraft production and related components. Growing emerging markets have led to increased global air travel and encouraged airlines to upgrade their aircraft fleets. Fuel-efficient aircraft becoming... Learn More

10. Tattoo Artists in the US

Business Environment Risk for 2023: 3.54

Tattoos have become unprecedentedly popular over the past decade, especially over the five years to 2023. Long obtained chiefly by members of subcultures, the stigma surrounding tattoos has largely faded. As a result, tattoo artists' customer base has expanded significantly, as has the revenue generated per customer. But industry revenue plunged in 2020 amid COVID-19, as tattoo parlors were forced to suspend business operations to comply with mandated safety regulations temporarily. As these restrictions have been lifted, increased disposable income and tremendous pent-up demand have sent industry revenue soaring. Over the five years to 2023, industry revenue is estimated to... Learn More