Americans have filed more than 21 million new business applications in the past four years, per the latest U.S. Small Business Administration data. Entrepreneurs filed an average of more than 440,000 new applications every month.
But figuring out where to start new businesses can be daunting, as there are certian areas of the country that offer better entrepreneurship opportunities than others. Using data collected in January from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau, business travel experts at Booking.com for Business examined which states were best suited for startups.
Related: Small Businesses Are Struggling in This Densely Populated U.S. State — and Thriving in These Others
When it comes to cities with the highest number of startups, San Francisco topped the list, with companies like OpenAI and Grammarly calling the city home. New York City, Mountain View, Boston, Redwood City, and Palo Alto were also among the top cities for startups.
However, even though California cities appear often on the top cities list, California was only ranked the tenth best state for startups. The state has a high number of startups, with 179,415, but the 10-year survival rate of these companies is 35%, which led to its lower ranking.
The researchers created a startup opportunity score out of 10 for each state, taking into account the total number of startups in the state, the number of startups per 100,000 people, and the 10-year survival rate of startups.
Montana, which was ranked the No. 1 state for startups, has a startup opportunity score of 9.55, the highest on the list, and a 10-year survival rate of 41%. Montana has a high number of startups compared to people in the state, or 422 startups per 100,000 people.
Vermont, which is ninth on the list, also has more than 400 startups per 100,000 people.
Here are the best states for startups, according to Booking.com.
1. Montana
Bozeman, Montana. Credit: Getty Images
Total number of startups: 4,800
Startups per 100,000 people: 422
10-year survival rate: 41%
Startup opportunity score: 9.55
2. Oregon
Total number of startups: 15,149
Startups per 100,000 people: 355
10-year survival rate: 36.4%
Startup opportunity score: 8.00
3. Nevada
Total number of startups: 12,034
Startups per 100,000 people: 368
10-year survival rate: 33.5%
Startup opportunity score: 7.20
4. Utah
Salt Lake City, Utah. Credit: Getty Images
Total number of startups: 13,384
Startups per 100,000 people: 382
10-year survival rate: 35%
Startup opportunity score: 7.15
5. Florida
Total number of startups: 86,692
Startups per 100,000 people: 371
10-year survival rate: 34.7%
Startup opportunity score: 7.10
6. Wyoming
Total number of startups: 2,782
Startups per 100,000 people: 473
10-year survival rate: 34.5%
Startup opportunity score: 7.10
7. Idaho
Boise, Idaho. Credit: Getty Images
Total number of startups: 8,548
Startups per 100,000 people: 427
10-year survival rate: 33.1%
Startup opportunity score: 7.05
8. Delaware
Total number of startups: 3,565
Startups per 100,000 people: 339
10-year survival rate: 32.8%
Startup opportunity score: 7.00
9. Vermont
Total number of startups: 2,843
Startups per 100,000 people: 438
10-year survival rate: 37%
Startup opportunity score: 6.85
10. California
San Francisco, California. Credit: Getty Images
Total number of startups: 179,415
Startups per 100,000 people: 455
10-year survival rate: 35%
Startup opportunity score: 6.25
For the full study, click here.
Read the full article here
