New report finds startup success highest in Colorado, Utah, and Michigan, with strong economies and business-friendly conditions
HAUPPAUGE, N.Y., Nov. 15, 2024 — Location, location, location. It’s not just true of real estate. If you’re interested in starting a business, you might maximize your chances of success if you decide to launch in Colorado. In its inaugural “Best States to Start a Business” report, National Business Capital crowned Colorado the top state for startups, followed by Utah and Michigan. These states combine booming economies, strong access to capital, and manageable taxes – all factors that favor a new venture.
Researchers at the national lending platform for business owners analyzed factors which helped new businesses flourish. Colorado and Utah’s balanced blend of opportunity, growth and support give them a clear edge, while tax-friendly Texas and Florida and high-capital states like California offer unique advantages for aspiring business owners.
The full study is available HERE:
Key Findings
- Top States Lead in Growth and Support – Colorado and Utah dominate with supportive, growth-oriented business environments, while Texas and Florida attract with low taxes, and California offers deep funding resources.
- New England Remains Tough for Startups – High costs and limited support challenge new businesses in New England. Massachusetts is the only state in the region to break the top 10.
- High First-Year Survival in Mid-Atlantic, Long-Term Success in the North – Pennsylvania, New Jersey, and New York report high first-year survival rates. States like Minnesota and Massachusetts excel at five-year survival.
- Stark Survival Rate Drop in Key States – Missouri, New Jersey, and Kentucky have sharp declines from first to fifth-year survival, with Missouri showing a 30% drop.
- Mountain West and Southeast See Highest New Business Applications – Wyoming, Delaware, Colorado, and Utah lead in new business applications, while New England and the northern heartland lagged.
“With a good business plan, hard work and a little luck, you can succeed anywhere,” said Joe Camberato, CEO, National Business Capital. “If, for instance, my cousin wanted to open a business and she could move anywhere in the country, I would urge her to read this study carefully.”
THE BEST U.S. STATES TO START A BUSINESS IN 2025
1.Colorado (score out of 100): 71
2.Utah (score: 68.1) – tie
2.Michigan (score: 68.1) – tie
4.Texas (score: 66.1)
5.Florida (score: 64.3)
6.California (score: 64.2)
7.Minnesota (score: 63)
8.Indiana (score: 62.7)
9.Massachusetts (score: 62.1)
10.Ohio (score: 61.6)
THE WORST U.S. STATES TO START A BUSINESS IN 2025:
41. New Hampshire (Score: 45.0 out of 100)
42. Wisconsin (43.1)
43. Maine (41.3)
44. New Mexico (40.7)
45. Arkansas (40.4)
46. Oregon (40.2)
47. Vermont (40)
48. West Virginia (39.3)
49. Rhode Island (35.7)
50. Kansas (29.4)
METRICS
Year One Survival Rates (12%)
Year Five Survival Rates (18%)
GDP Per Capita (8%)
LLC Filing Costs (4%)
LLC Annual Costs (6%)
Top Corporate Tax Rate (7.5%)
Business Applications Per Capita (13%)
Venture Capital Per Capita (8%)
SBA Loan Approvals Per 100,000 Residents (11%)
Gross Receipts Tax (5%)
Personal Income Tax (7.5%)
About NationalBusinessCapital:
NationalBusinessCapital helps entrepreneurs secure quick and fair financing to save time and cultivate sustainable growth.
The company’s stress-free online platform is designed for simplicity and speed, helping business owners go from application to approval in a matter of hours. From SBA loans to lines of credit, equipment financing, and more, business owners can access all the different financing programs available to them in one place.
For more information on this list and this topic, please contact Sarah Johnson, [email protected].
CONTACT
Sarah Johnson
SOURCE National Business Capital
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