You can be on Entrepreneur’s cover!

These 10 States Make it Easier to Start a Business Start your next venture in a business-friendly climate.

By Grace Reader

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.


If you're looking to start a small business, you have likely considered target markets, financing and growth strategies, but don't forget one of the most important factors: location.

Related: How to Find the Best Location

Thumbtack, a service that connects people with businesses and licensed professionals, rated 35 states and 78 cities on overall small-business friendliness.

The survey asked 12,000 small-business owners about government policies in their areas, rating locations on ease of starting a business, ease of hiring and other business related regulations and codes.

Related: Rating the Best -- and Worst -- States to Do Business

Cities and states that make regulatory practices easier -- especially for licensing, taxes and employment -- generally rated better. Those surveyed said that regulations are often one of the biggest obstacles to overcome when starting a business.

For more on the methodology of the survey, click here. For a look at the 10 best states to start a business, continue on to the slideshow below.

10. South Carolina

Best: A for training and networking programs

Worst: C- for ease of hiring

9. Oregon

Best: A+ for ease of starting a business

Worst: D for zoning

8. Arkansas

Best: A+ for environmental factors

Worst: C+ for ease of hiring

7. Virginia

Best: A for ease of hiring

Worst: C- for training and networking programs

6. Kansas

Best: A+ for ease of hiring

Worst: F for training and networking programs

5. Colorado

Best: A+ for training and networking programs

Worst: C- for zoning

4. Georgia

Best: A+ for overall friendliness

Worst: C- for training and networking programs

3. Tennessee

Best: A+ for overall friendliness

Worst: C- for training and networking programs

2. Utah

Best: A+ for overall friendliness

Worst: D+ for environmental factors

1. Texas

Best: A+ for overall friendliness

Worst: B for training and networking programs
Grace Reader


Grace Reader is a former editorial intern at and a current freelance contributor. She is a third year journalism and media communication major at Colorado State University. Grace is the PR and marketing manager at Colorado State University's Off-Campus Life, and a sports anchor at CTV Channel 11. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

AI Will Radically Transform the Workplace — Here's How HR Teams Can Prepare for It

HR intrapreneurs are emerging as key drivers of AI reskilling, thoughtful organizational restructuring and ethical integration, shaping an inclusive future where technology enhances both efficiency and employee development.

Business News

Some Costco Stores Are Now Selling a Frozen Item That Looks Just Like a Trader Joe's Fan Favorite

The Frozen Kimbap is a Trader Joe's cult favorite, and now a version can be found at Costco, too.

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.

Health & Wellness

How This Millionaire Investor Overcame Opioid Addiction to Become the World's Fastest Marathoner Over 50

Ken Rideout shares five invaluable lessons for achieving peak performance physically and mentally.


Why This One Unique Marketing Approach is the Key to Business Growth

Adopting this approach now will help you succeed and see consistent, measurable growth over the long term.