Lendio, the leading small business loan marketplace, has released the results of its latest study ranking the best states in the US for starting a small business in 2024. Florida came out as the top state for entrepreneurs, followed closely by Texas and North Carolina.
The study analyzed 10 key metrics, taken from government and non-profit organizations and Lendio’s internal data, to determine the rankings. These metrics include start-up living standards, access to business finance, favorable tax conditions, and cost of living, providing a comprehensive view of the business climate in all 50 states.
Top 10 States for Small Businesses
Florida took the top spot in the rankings, edging out Texas, which was the leader in Lendio’s 2023 analysis. North Carolina took third place, followed by Colorado, South Carolina, Ohio, Georgia, Massachusetts, Utah, and Oklahoma, rounding out the top ten states. Although the top 10 states remained unchanged from last year’s rankings, there were some notable shifts, such as Florida overtaking Texas.
Challenges in Low Level Regions
On the other end of the spectrum, Hawaii, New Hampshire, and Nebraska have been identified as the smallest states for starting a small business. These regions are ranked lower due to limited access to business capital and business financing, few local incentive programs, high tax rates, and high cost of living, making it more challenging for small businesses to develop.
Key Insights from Research
Brock Blake, CEO and Founder of Lendio, highlighted the resilience of small businesses despite the economic challenges of recent years. “Small businesses are a very important part of our economy, but they have faced unprecedented challenges in the last five years from the global pandemic to high interest rates,” Blake said. “Despite these challenges, small businessmen continue to fight for their dreams and start new businesses at record-breaking rates. Countries that are creating a good environment for businesses will benefit from the influx of small businesses that opened last year.”
Top Performers in individual metrics
The study also identified successful districts by specific metrics:
- Average 5-Year Survival: Minnesota
- SBA Loans Approved for 100K People: Utah
- Loan Donations Received Through Lendio Marketplace By 100K People: Wyoming
- Venture Capital per $1 million GDP: Massachusetts
- Low Corporate Tax Rate: Arkansas
- Most of the business benefits: Maryland
- Major Benefits for People: In Florida
- Mobility of Highly Educated Workers per 100K People: In Colorado
- Low Housing Costs: West Virginia
- The biggest expenses for personal use: California
