Idaho Still Holds Strong Positioin in Top 5 States for Starting a Business!

, WalletHub Financial Writer

Best & Worst States to Start a Busines

Starting a business is never easy. Over one-fifth of all startups typically don’t survive past year one of operation, according to the U.S. Bureau of Labor Statistics, and nearly half never reach their fifth anniversary. Staying afloat is challenging even in stable times—and even more so amid elevated inflation and persistent labor market tightness.

Beyond these macroeconomic headwinds, there are many other common reasons startups fail, and a “bad location” remains one of the top ones. Choosing the right state for a business is therefore crucial. A state that offers the right ecosystem—access to capital, skilled talent, affordable real estate, for instance—can give new ventures a leg up not just to start, but to scale.

In this study, WalletHub compared the 50 states across 25 key indicators of startup success to determine the most fertile grounds in which to launch and grow an enterprise

“Around half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting, especially with the current high cost of living. That’s why it’s crucial to establish your business in a state that will maximize your chances of success. The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate. On top of that, you’ll need to make sure you start in a place with an engaged customer base, if you’re operating locally.”

Chip Lupo, WalletHub Analyst

Best States to Start a Business

Overall Rank 

State

Total Score 

Business Environment Rank 

Access to Resources Rank 

Business Costs Rank 
1 Florida 56.30 2 12 27
2 Utah 55.24 6 2 31
3 Texas 54.07 1 11 34
4 Oklahoma 53.22 13 30 2
5 Idaho 52.49 17 13 9
6 Mississippi 52.43 20 41 1
7 Georgia 52.32 5 32 21
8 Indiana 52.14 14 22 8
9 Nevada 51.83 7 14 28
10 California 51.11 3 1 49
11 Arkansas 50.89 24 27 3
12 Montana 50.55 10 45 6
13 Arizona 50.35 4 28 29
14 Louisiana 50.32 8 33 15
15 North Carolina 49.73 16 29 14
16 Alabama 49.60 23 39 5
17 South Carolina 49.04 22 37 10
18 Colorado 48.99 12 7 37
19 Kentucky 48.02 36 17 7
20 New Mexico 47.93 18 44 11
21 Tennessee 47.38 9 38 25
22 Nebraska 46.59 27 25 22
23 Kansas 46.29 32 21 17
24 Maine 46.25 15 40 26
25 North Dakota 45.86 21 43 16
26 South Dakota 45.73 34 46 4
27 Delaware 45.52 19 10 40
28 Wyoming 45.01 26 42 24
29 Illinois 44.91 38 3 35
30 Michigan 44.89 40 23 13
31 Wisconsin 44.12 45 15 23
32 Ohio 44.01 33 36 19
33 Missouri 43.18 39 31 20
34 Massachusetts 41.91 28 6 44
35 Iowa 41.90 49 26 12
36 Oregon 41.48 25 20 41
37 Minnesota 41.15 48 9 32
38 Washington 40.79 42 4 43
39 Vermont 40.60 43 24 30
40 Virginia 39.36 30 35 39
41 New York 39.25 37 5 48
42 New Hampshire 38.13 29 49 33
43 Alaska 37.77 11 47 46
44 West Virginia 37.61 46 50 18
45 Pennsylvania 36.67 47 34 36
46 New Jersey 35.81 35 8 50
47 Connecticut 35.45 41 16 45
48 Hawaii 34.80 31 48 42
49 Maryland 34.58 44 18 47
50 Rhode Island 33.79 50 19 38

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

Avg. Growth in Number of Small Businesses
Highest
  • 1. Idaho
  • 2. Utah
  • 3. Delaware
  • 4. Nevada
  • 5. Florida
Avg. Growth in Number of Small Businesses
Lowest
  • 46. Hawaii
  • 47. Connecticut
  • 48. New York
  • 49. Vermont
  • 50. West Virginia
Accessible Financing
Most
  • T-1. North Dakota
  • T-1. Utah
  • T-1. South Dakota
  • T-1. Iowa
  • T-1. Nebraska
Accessible Financing
Least
  • 46. Rhode Island
  • 47. California
  • 48. Florida
  • 49. Delaware
  • 50. Arizona
Labor Costs
Lowest
  • 1. Mississippi
  • 2. West Virginia
  • 3. Arkansas
  • 4. Louisiana
  • 5. Alabama
Labor Costs
Highest
  • 46. California
  • 47. Hawaii
  • 48. New Jersey
  • 49. Massachusetts
  • 50. Maryland
Best State vs. Worst State: 2x Difference
Mississippi vs. Maryland
Availability of Human Capital
Highest
  • 1. California
  • 2. Nevada
  • 3. Illinois
  • 4. Washington
  • 5. Kentucky
Availability of Human Capital
Lowest
  • 46. Virginia
  • 47. South Dakota
  • 48. North Dakota
  • 49. New Hampshire
  • 50. Vermont
Avg. Work Week (in Hours)
Longest
  • 1. Alaska
  • 2. Texas
  • T-3. Louisiana
  • T-3. Wyoming
  • T-5. Mississippi
  • T-5. North Dakota
Avg. Work Week (in Hours)
Shortest
  • T-43. Massachusetts
  • T-43. New York
  • T-47. Oregon
  • T-47. Rhode Island
  • 49. Vermont
  • 50. Utah
Office Spaces Rent
Cheapest
  • 1. Iowa
  • 2. Maine
  • 3. South Dakota
  • 4. Montana
  • 5. Minnesota
Office Spaces Rent
Most Expensive
  • 45. New Jersey
  • 46. Maryland
  • T-47. California
  • T-47. Alaska
  • T-47. New York
Best State vs. Worst State: 2x Difference
Iowa vs. New York
Educated Population
Most
  • 1. Massachusetts
  • 2. Colorado
  • 3. New Jersey
  • 4. Maryland
  • 5. Vermont
Educated Population
Least
  • 46. Kentucky
  • 47. Louisiana
  • 48. Arkansas
  • 49. Mississippi
  • 50. West Virginia
Best State vs. Worst State: 2x Difference
Massachusetts vs. West Virginia
Read more here: Best & Worst States to Start a Business in 2026

Idaho Still Holds Strong Positioin in Top 5 States for Starting a Business!

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