New research has named the states the most interested in starting a business, with Arizona ranking tenth. The study, conducted by digital marketing experts at Skyline Social, analyzed U.S. Census Bureau data from October 2023 to September 2024 on the number of business applications in each state, to identify which state is the most entrepreneurial.
According to the findings, Arizona is the tenth state keenest to start a business, with 1,632 business applications per 100,000 residents. The state recorded 121,315 business applications across the period analyzed for the study. October was the most popular month to start a business, with 10,616 business applications, compared to February, which had the fewest at 9,703.
Wyoming tops the ranking, with 10,328 business applications per 100,000 residents – 510% above the national average of 1,693 business applications per 100,000 people.
60,323 business applications were made in the state during the analyzed period, with January seeing the highest number of applications at 5,411 and May recording the lowest at 4,780.
Delaware had the second–highest number of business applications per 100,000 people, at 5,489, which is 224% higher than the U.S. average.
There were a total of 56,639 business applications in the state from October 2023 to September 2024. September reported the most, with 5,060 business applications, while April was the least popular month, with 4,391 business applications.
Florida ranks third, with 2,844 business applications per 100,000 residents – 68% above the national average.
643,123 business applications were made in the state during the analyzed period, with October seeing the highest number of applications at 58,687 and July recording the lowest at 50,193.
The 10 states with the highest rate of business applications (2023 – 2024)
|
Rank |
State |
Business applications per 100,000 residents (October 2023 – September 2024) |
|
1. |
Wyoming |
10,328 |
|
2. |
Delaware |
5,489 |
|
3. |
Florida |
2,844 |
|
4. |
Colorado |
2,387 |
|
5. |
Montana |
2,300 |
|
6. |
Georgia |
2,230 |
|
7. |
Utah |
2,087 |
|
8. |
Nevada |
1,945 |
|
9. |
New Jersey |
1,657 |
|
10. |
Arizona |
1,632 |
At the other end of the scale, West Virginia is the state least interested in starting a business, with only 847 business applications per 100,000 people – 50% below the U.S. average.
There were 15,000 business applications made in the state from October 2023 to September 2024. July reported the fewest number of business applications at 1,175, while February had the highest at 1,401 business applications.
Maine had the second fewest number of business applications per 100,000 residents at 1,011, which is 40% less than the national average.
The state recorded 14,117 business applications in the period analyzed. April was the least popular month for starting a business with only 987 applications, compared to December – the most popular month – with 1,279 applications.
Iowa ranks third, with 1,013 business applications per 100,000 people – 40% below the U.S. average.
32,501 business applications were made in the state from October 2023 to September 2024. There were the fewest business applications in April, with 2,517, and the highest in October, with 3,039 applications.
The 10 states with the lowest rate of business applications (2023 – 2024)
|
Rank |
State |
Business applications per 100,000 residents (October 2023 – September 2024) |
|
1. |
West Virginia |
847 |
|
2. |
Maine |
1,011 |
|
3. |
Iowa |
1,013 |
|
4. |
Rhode Island |
1,024 |
|
5. |
Nebraska |
1,058 |
|
6. |
Wisconsin |
1,065 |
|
7. |
Massachusetts |
1,072 |
|
8. |
North Dakota |
1,087 |
|
9. |
Kansas |
1,100 |
|
10. |
Vermont |
1,127 |
“Despite having small populations, Wyoming and Delaware lead the nation in business applications due to their corporate-friendly environments,” said Ash Davis, CEO And Founder of Skyline Social. “Wyoming’s business-friendly tax climate makes it a favorable place to start a business, with no corporate, inventory, or personal state income tax. Delaware is also a popular choice because it has flexible corporate laws, an especially fast process for company filings, and no minimum requirement for a company’s bank account. In comparison, while West Virginia is working toward becoming more business-friendly, it still faces many challenges, including infrastructure gaps like limited broadband and transportation in rural areas.”
