Population Growth, SBA Loans, Venture Capital Are Key Factors
Earlier this year we shared the results from WalletHub’s annual survey of the Best Cities to Start A Business in 2024. That ranking was dominated by Florida and Georgia with the two states accounting for 6 of the top 10 cities in the country for startups based on WalletHub’s metrics.
And today we have a new ranking from online business loan marketplace, Lendio, which compares all 50 states based on their basket of criteria which includes population growth, the number of SBA loans, access to venture capital, corporate income taxes, and median housing costs among other factors.
There is a link to the full report at the bottom of this post, but here are some of the highlights from the Top 10 States to Start A Small Business in 2024 according to Lendio.
Florida Named The #1 State To Start A Small Business
While Florida dominated the annual ranking of Best Cities to Start A Small Business, the statewide ranking shows a similar result.
Florida earns the top spot in the 2024 Best State ranking which found the Sunshine State moving up one spot from the #2 ranking last year. One of the key factors where Florida reigned supreme is Population Growth earning the #1 ranking among all 50 states.
Florida also received high marks for the number of SBA loans issued per 100,000 in population (#12), the amount of venture capital per $1 million in state GDP (#13.), and the level of educated worker mobility (#8).
Texas Ranks #2 Best State To Start A Small Business
Texas slipped one notch from #1 in 2023 to the #2 spot in this year’s Lendio ranking. Like Florida, Texas was the net recipient of a massive wave of new residents (#2) seeking new opportunities.
Texas also received high marks for the state’s lack of corporate income tax as well as access and availability of venture capital (#20).
North Carolina Rounds Out the Top 3 Best States For Startups
North Carolina jumped up 2 spots from #5 in 2023 to #3 in this year’s ranking of Best States to Start a Small Business.
Like Florida and Texas, the pro-business climate in North Carolina serves as a magnet for new residents and aspiring entrepreneurs.
Beyond population growth, North Carolina ranks high for access and availability of venture capital (#12), a low corporate income tax rate (#7), and the 5-year survival rate of startups in the state (#18).
South Carolina and Georgia Move Higher In the Top 10
South Carolina and Georgia are no strangers to the Top 10 ranking of Best States to Start A Small Business, and both states moved higher in the 2024 ranking.
South Carolina moved up 3 spots this year to nab the #5 spot in Lendio’s 2024 ranking. The Palmetto State was ranked #4 overall in terms of population growth and #18 overall in terms of corporate income taxes.
Neighboring Georgia moved up 2 spots this year to claim the #7 spot in the 2024 ranking earning high marks for population growth (#6) and other factors.
To read the official press release with sortable data for all 50 states, visit Lendio.com. To see the full list of Top 10 states, click the video below.
Contact CII Today
If you own an established business in Florida or Georgia and would like to get a better understanding of the current market value of your company and important steps you can take today to maximize that value, get in touch with a CII business advisor today.