A new study has unveiled some exciting news for entrepreneurs and small business owners across America. The state of Florida has been ranked as the second-best place to launch a small business in the US, according to a recent study by SimplifyLLC, a service dedicated to providing essential tools and techniques to small businesses. But, which state took the first spot? That would be the Lone Star State, Texas.
Record Number of New Businesses in 2023
The U.S. Small Business Administration has noted a significant increase in the number of small businesses launched in the United States and the District of Columbia during 2023. The figure reached a record of 5.5 million new businesses, reflecting the entrepreneurial spirit of Americans aged 18 to 64.
The Factors That Make Florida a Top Spot for Entrepreneurs
The study took into consideration six key factors to determine the rankings, including corporate tax rates, inflation, migration of educated workers, new business formations, job creation, and consumer spending. Florida emerged as the second-best state thanks to its impressive net influx of educated workers, standing at 144,915 and a commendable job creation rate, which saw a 12.7% increase. Consumer spending also witnessed a 3.4% increase, further cementing Florida’s position.
Texas Outranks All with Stellar Business Growth
The only state to outrank Florida was Texas, which clinched the top spot thanks to a strong influx of educated workers and an astonishing business growth of 23.7% in the year ending November 2023.
Following Florida, the study ranked Wyoming, Missouri, and Delaware as the next best states for small businesses and entrepreneurs. At the other end of the spectrum, Louisiana, Washington D.C., and California were ranked as the least friendly states for small businesses, taking the 51st, 50th, and 49th spots respectively.
This study offers a fresh perspective on America’s entrepreneurial landscape, suggesting that Florida and Texas may be the new hotspots for small businesses. With a welcoming business environment, thriving job market, and an influx of educated workers, these states offer the perfect mix for entrepreneurial success.
However, it’s important to remember that while these rankings provide a helpful guideline, the success of a small business ultimately depends on various factors, including the business model, industry, and the dedication of the entrepreneur. So, while Florida and Texas are undoubtedly appealing options, entrepreneurs shouldn’t rule out other states that may offer unique opportunities for their specific business needs.
