Business valuation experts Eton Venture Services analyzed United States Census Bureau data on the number of new business formations in each state from January to May in 2025. To reduce the effects of population bias, the ranking has been determined by the states that have had the highest rate of business formations per 100,000 people.
Arizona is 16th in the US for business formations, with a total of 55,545 business formations between January and May 2025, which is 2% above the national average and equates to 733 business formations per 100,000 people.
The 10 most business-savvy US states:
|
Rank |
State |
Total Number of Business Formations Between January – May 2025 |
Total Number of Business Formations Between January – May 2025 Per 100,000 People |
Difference from the National Average |
|
1. |
Wyoming |
30,859 |
5,252 |
+633% |
|
2. |
Delaware |
25,446 |
2,419 |
+238% |
|
3. |
Florida |
284,418 |
1,217 |
+70% |
|
4. |
Montana |
12,934 |
1,137 |
+59% |
|
5. |
Colorado |
62,816 |
1,054 |
+47% |
|
6. |
Georgia |
111,815 |
1,000 |
+40% |
|
7. |
Washington |
78,392 |
985 |
+37% |
|
8. |
Nevada |
28,234 |
864 |
+21% |
|
9. |
Utah |
29,931 |
854 |
+19% |
|
10. |
New Mexico |
16,094 |
755 |
+5% |
|
|
United States |
2,437,596 |
717 |
|
Wyoming tops the ranking, with an impressive total of 30,859 new business formations in the first five months of 2025, which equates to 5,252 formations per 100,000 people. This rate is more than six times higher than the national average of 717 new business formations per 100,000 people.
Delaware is second, with 2,419 business formations per 100,000 residents, which is 237% above the national average. Despite having a relatively small population of just over 1 million residents, Delaware recorded 25,446 total business formations between January and May 2025.
Florida ranks third, with 1,217 business formations per 100,000 residents, which is nearly 70% above the national average. The state recorded the highest number of business formations among the top performers, with a total of 284,418 new businesses registered between January and May 2025.
Montana follows next, with 1,137 business formations per 100,000 people and a total of 12,934 new business creations in the first five months of 2025, which is 59% higher than the national average.
In fifth place is Colorado, with 1,054 business formations per 100,000 residents. The state has seen 62,816 total new business formations between January and May 2025, which is 47% above the US’s average.
Georgia is America’s sixth-most business-savvy state, with 1,000 business creations for every 100,000 people. In total, there were 111,815 business formations in the first five months of 2025, which is 40% higher than the national average.
Washington is in seventh position, with 985 business formations per 100,000 residents and 78,392 in total between January and May 2025, which is 37% higher than the nation’s average.
Nevada is in eighth place, with 864 new business creations for every 100,000 people and 28,234 new business formations in total in the first five months of this year. This is 21% higher than the US’s average.
Next is Utah, with a total of 29,931 business formations between January and May 2025, which is 19% above the national average and equates to 854 business formations per 100,000 people.
New Mexico completes the 10 most business-savvy states, with 756 business formations per 100,000 people. In total, the state recorded 16,094 business creations in the first five months of the year, which is 5.4% higher than the national average.
Chris Walton, President & CEO of Eton Venture Services, adds:
“It is exciting to see the high volumes of business formations across the US. Wyoming’s impressive rate likely stems from its business-friendly regulatory framework and tax advantages that make it attractive for new entity registrations and even for entrepreneurs based elsewhere.”
“Furthermore, seeing states like Montana and New Mexico in the top rankings is interesting, since these states don’t typically dominate economic headlines, yet they’re showing great entrepreneurial activity relative to their populations.”
