Florida Named Best State for Startups 2024

Florida has claimed the top spot as the best state to start a small business in 2024, according to a recent study by Lendio. The Sunshine State edged out Texas and North Carolina, which ranked second and third respectively. The study analyzed 10 metrics from government and nonprofit sources, as well as Lendio’s internal data.

These metrics included startup survival rates, access to business financing, favorable tax environments, and cost of living. Florida’s low corporate tax rate of 5.5% and the significant migration of consumers and companies to the state contributed to its top ranking. Like Texas, Florida also saw more than half of its startup businesses survive for at least five years.

Additionally, Florida is the top recipient for SBA loan dollars, further bolstering its position as the best state for launching a new venture. “Small businesses are a critical part of our economy, but they’ve faced unprecedented challenges in the past five years, from a global pandemic to high interest rates,” said Brock Blake, CEO and Co-Founder of Lendio. “Despite these challenges, small business owners continue to fight for their dreams and start new businesses in record-breaking numbers.

States that create a favorable business environment will benefit from the influx of small businesses opened in the past year.”

Texas’ strengths include a high rate of SBA loan approvals and a robust survival rate for new businesses. Over 400,000 people with at least some college education moved to Texas in 2022, making it a prime location for educated entrepreneurs.

Florida leads for startups in 2024

The absence of a state income tax also makes Texas an attractive destination for both individuals and businesses. The top 10 states to start a small business in 2024 are:

1. Florida
2.

Texas
3. North Carolina
4. Colorado
5.

South Carolina
6. Ohio
7. Georgia
8.

Massachusetts
9. Utah
10. Oklahoma

These rankings provide valuable insights for aspiring entrepreneurs on where to consider launching their new ventures, taking into account factors like tax rates, business survival rates, and access to financial resources.