Arizona Is a Top Ten State with the Biggest Business Market Growth over the Last Decade

New research has found that Arizona has seen some of the biggest increases in new businesses in the U.S. over the last ten years compared to every other state. Arizona places tenth seeing an overall business market growth of 112.7% over the past decade.

The study conducted by business formation experts CreditDonkey analyzed the number of business applications submitted in each state in March 2014 and compared this against the number of applications submitted in March 2024, as reported by the U.S. Census Bureau. The percentage increase of these applications was calculated for each state and then ranked accordingly to identify those with the largest growth.

The study found that the number of business applications submitted has increased by a substantial 90.9% nationally over the past ten years – increasing from 228,193 new applications recorded year-over-year in March 2014 to 435,629 in March 2024.

The state with the highest business market growth, with an increase of more than six times higher than the US national increase, is Wyoming. According to the findings, the state has experienced an immense 616.2% increase in business applications between 2014 and 2024 – increasing from 714 to 5,114 submitted applications. Data from the SBA reveals that the most popular small businesses to establish in Wyoming are in the real estate sector – with an increasing interest in residents leasing properties.

Second is Delaware, which has experienced a 233.4% increase in business applications over the last decade – more than double the national average. The number of new applications in the state has increased from 1,338 in 2014 to 4,461 in 2024 – with the highest number of the state’s small businesses found in the professional, science and tech space.

Montana ranks third, with the study finding that new business applications have increased from 815 in March 2014 to 2,118 in March 2024 – which equates to a 159.9% increase. As the SBA reports that the construction sector is the largest small business industry in the state.

New Mexico ranks fourth as the analysis results show that the state has seen a 150.9% increase in new business applications over the last ten years – rising from 1,111 to 2,787 submitted applications. Of these businesses, the SBA reports the professional, scientific and tech sectors are the largest in New Mexico.

Completing the top five states is South Carolina. The state has experienced a 132.5% growth in new business applications between March 2014 and March 2024, increasing from 2,999 to 6,972 in the state – with miscellaneous private and specialized services accounting for the highest proportion of small businesses in the state.

Ten states with the largest business market growth:

Rank	State	Mar-14 Applications	Mar-24 Applications	Increase
1	Wyoming	714	5,114	616.2%
2	Delaware	1,338	4,461	233.4%
3	Montana	815	2,118	159.9%
4	New Mexico	1,111	2,787	150.9%
5	South Carolina	2,999	6,972	132.5%
6	North Carolina	6,180	13,916	125.2%
7	Mississippi	1,782	3,889	118.2%
8	Texas	18,937	40,684	114.8%
9	Alabama	2,541	5,448	114.4%
10	Arizona	4,697	9,990	112.7%

Rounding out the top ten states with the highest increase in business applications over the last ten years, in sequence are North Carolina (125.2%), Mississippi (118.2%), Texas (114.8%), Alabama (114.4%) and Arizona (112.7%)

Despite the study finding that every state did experience a growth in new business applications between March 2014 and March 2024, the research by the experts at CreditDonkey identified that some increases were significantly smaller than the states ranking at the top of the study.

According to the findings, North Dakota has seen the smallest growth in new business applications of any US state – seeing only a 14% increase in applications compared to March 2014.

This is followed by New York in second, with the study finding a rise in new business applications from 16,708 in March 2014 to 24,032 in March 2024 – but this equates to only a 43.8% increase over the decade. This is less than half the growth seen across the nation.

Nevada follows closely with the third-smallest increase in business applications over the time analyzed – with a 44.8% growth in the state’s business market.

Massachusetts and Maryland rank fourth and fifth, experiencing 51.8% and 56.4% increases in business applications, respectively.

Ten states with the smallest business market growth:

Rank	State	Mar-14 Applications	Mar-24 Applications	Increase
1	North Dakota	634	723	14.0%
2	New York	16,708	24,032	43.8%
3	Nevada	3,601	5,215	44.8%
4	Massachusetts	4,147	6,297	51.8%
5	Maryland	5,029	7,867	56.4%
6	Alaska	467	744	59.3%
7	Oregon	2,772	4,480	61.6%
8	New Jersey	7,886	12,837	62.8%
9	Hawaii	949	1,551	63.4%
10	Kansas	1,617	2,649	63.8%

“The results of the study share an interesting insight into where people have become most interested in starting a business, compared to previous years,” said Director of Research at CreditDonkey, Anna Ge. “As the analysis highlights, the business market in the US has almost doubled over the last ten years – indicating that Americans are becoming increasingly entrepreneurial.

“Being a business owner can be attractive and lucrative – providing unique levels of freedom and flexibility which do not exist in other employment. With the increasing cost of living, many people are keeping a closer eye on their finances than ever before, and it appears that many may be seeking an increased income from setting up their own business as either their primary venture or alongside their existing career.

“However, setting up a business is not a ‘quick fix’ or something which should be considered lightly – there are many risks involved. For example, a new study published by Statistica revealed that nearly two-thirds of businesses founded between 2013 and 2023 were not still operating by the end of the ten years – highlighting that these risks may lead to serious losses for the entrepreneurs. That being said, for those businesses which survive and consequently thrive, the benefits can be exponential.”