These Are the Best and Worst States to Start a Business in 2023

The place you launch your next venture could be the difference between its success and failure.

learn more about Amanda Breen

By Amanda Breen

Morsa Images | Getty Images

If diving into entrepreneurship was on your list of New Year's resolutions this year, you might be wondering how to position yourself for maximum success.

Maybe you've already checked some of the essentials off your list: You've come up with a business idea, started market research and gotten critical feedback.

But you should also consider what could go wrong and get ahead of it.

Related: The Complete, 12-Step Guide to Starting a Business

Something as simple as where you launch your venture could mean the difference between if it flourishes — or fails.

According to the U.S. Small Business Administration, your business location is "one of the most important decisions you'll make," as it impacts your taxes, legal requirements, revenue and more.

Wallethub compared the 50 states across 27 key indicators of startup success to zero in on the best place to start and grow your next big idea. Here's what it found:

Source: WalletHub

Overall Rank:

1

State:

Utah

Total Rank:

59.91

Business Environment:

7

Access to Resources:

1

Business Costs:

32

2Florida59.2111424
3Texas56.8531231
4Colorado56.144735
5Idaho55.8892110
6Georgia55.3752619
7Arizona53.7962230
8Nevada53.54121126
9Oklahoma53.1228191
10California52.972249
11North Carolina52.90111720
12Montana52.8615287
13Maine51.73104118
14Kentucky50.6824364
15Washington50.6013341
16South Carolina49.99183517
17Tennessee49.90144021
18South Dakota49.7034255
19Massachusetts49.4217444
20Mississippi49.3743302
21Michigan49.3236246
22Hawaii48.9581543
23Indiana47.75294211
24Arkansas47.6525499
25Nebraska46.92323916
26Illinois46.8939637
27Iowa46.84312723
28Alabama46.5138478
29Louisiana46.29404312
30New Mexico46.12334614
31New York46.1019547
32Oregon46.03161840
33Vermont45.79352329
34Delaware45.4823942
35Ohio45.21453713
36Kansas44.68444415
37Wisconsin44.43463122
38Minnesota44.17273233
39New Hampshire43.71213839
40Missouri43.69483425
41Maryland43.65201048
42Virginia43.38262938
43North Dakota43.34374527
44Pennsylvania42.84422034
45Wyoming42.66414828
46Rhode Island42.03471636
47New Jersey41.63221350
48West Virginia40.5650503
49Connecticut39.9749846
50Alaska39.44303345
Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at Entrepreneur.com. She is a graduate of Barnard College and recently completed the MFA in writing at Columbia University, where she was a news fellow for the School of the Arts during the 2020-2021 academic year. 

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