Lendio has released a study on the Best States to Start a Small Business using the most recent data from the Bureau of Labor Statistics, Census Bureau, and Small Business Administration from 2016-2023.
The rankings were determined by analyzing myriad factors including tax rates, startup survival rates, cost of living, educated worker migration, loans, funding, consumer spending, and incentive programs.
Texas, Florida and Ohio rank top in the Lendio list due to low taxes, mass migration of educated workers, sufficient business funding and the fact that more than half of all startups had survived at least five years in each state, which was above average.
The 10 best states to start a small business in 2023, according to the Lendio report:
- North Carolina
- South Carolina
Hawaii, Maine and New Hampshire ranked as the bottom three states, due to low business funding and venture capital availability, limited local incentive programs, high tax rates and high cost of living.
Full state-by-state and national breakdowns are available in the complete study.