Illustration: jemastock/iStock
Texas leads the rankings in Simplify LLC’s 2024 study on the Best States for Entrepreneurs. The analysis utilized data from the Census Bureau, BEA, and Federation of Tax Administrators spanning from 2021 to 2023.
Simplify examined six key factors across all states and D.C., including corporate tax rate, inflation, migration of educated workers, new business formations, job creation, and consumer spending.
Texas secured the top spot due to its absence of a corporate tax rate and the significant influx of educated workers, with a net increase of nearly 76,000 college-educated adults in 2022. Additionally, the state demonstrated robust new business growth of 23.7% in the year ending November 2023.
The top 10 states for entrepreneurs, in order from 1 to 10, are Texas, Florida, Wyoming, Missouri, Delaware, South Dakota, Kansas, Washington, Utah, and Indiana. Louisiana was identified as the lowest-ranking state in the study.
Surge in Entrepreneurship
In 2023, a record 5.5 million entrepreneurs launched new businesses nationwide, as reported by the SBA. This marked the third consecutive year of historically high numbers of Americans venturing into entrepreneurship.
The study highlights that the rise in entrepreneurship began during the global COVID-19 pandemic, driven by job losses, voluntary resignations, and the normalization of remote work. Technological advancements enabled individuals to maintain productivity while working from home, leading to a surge in entrepreneurial endeavors.
Simplify also predicts that the integration of artificial intelligence will help entrepreneurs reduce costs and streamline operations, potentially fostering the creation of more businesses in the future.
By analyzing recent federal data across six key metrics, Simplify identified the best and worst states for entrepreneurs in 2024, considering factors such as job creation, consumer spending, inflation, business growth, corporate taxes, and the attractiveness of a state to educated workers.
For the full study, click here.
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