Under normal circumstances, almost half of the startups in the U.S. are not likely to make it five years. And one fifth of all startups close their doors after the first year of business, according to data from the U.S. Bureau of Labor Statistics, reported by WalletHub.
And last year brought sky-high inflation rates for Floridians, so it might be surprising that Florida ranked in WalletHub’s top three best states for starting a business in 2024.
Here’s where Florida ranked on WalletHub’s list of the best states for opening a business this year and why.
What state is best to start a small business?
The personal finance company measured each state’s potential for business owners by using 25 different indicators of startup success to find the best places in the country for launching and growing an enterprise.
“Starting a business is a difficult and risky process, but where you live can highly influence your chances of success,” WalletHub Analyst Cassandra Happe said in the study.
“Before establishing a business in any location, make sure to do research to ensure it’s an ideal place for your customer base, has enough labor and supplier availability, and suits your needs when it comes to financing.”
That being said, Utah ranked as the best state in the country for business owners. Georgia was the runner-up and Florida rounded out the top three.
Is Florida good place to start a business?
Here’s WalletHub’s list of the top 10 best states to start a business in 2024:
Why is it good to start a business in Florida?
Last year was rough on Florida’s economy. Inflation rates spiked to become the highest in the country during the summer of 2023 and insurance providers were dropping all kinds of policy-holders throughout the state – some dropped out of servicing Floridians for good.
But things are looking up in 2024, according to WalletHub’s report. Florida is going into the new year with a growing workforce and more startups and business-owners than most states. Florida ranked fourth-best in the “Average growth in number of small businesses” category.
“Florida is the third-best state for starting a business, in large part because the local economy is booming overall. Florida has one of the highest real GDP growth rates in the country, at over 4%,” the report said.
“Florida’s working-age population (age 16-64) is growing much faster than in other states… Florida also has more entrepreneurs and startup firms relative to its population than most other states.”