Starting a business is never easy. Over one-fifth of startups fail within their first year, according to the U.S. Bureau of Labor Statistics, and nearly half never reach their fifth anniversary. Staying afloat is difficult even in stable economic conditions—and even more so amid elevated inflation and ongoing labor market tightness.
Beyond these macroeconomic headwinds, one factor consistently ranks among the top reasons businesses fail: location. Choosing the right state can significantly influence whether a company merely survives or successfully scales. A supportive ecosystem—access to capital, skilled labor, affordable operating costs, and responsive government—can give entrepreneurs a critical edge.
In a new study, WalletHub compared all 50 states across 25 key indicators of startup success to determine the most fertile environments for launching and growing a business. The results reveal a sharp divide between the nation’s leaders and laggards, with Florida ranked No. 1, followed by Utah and Texas, while Rhode Island finished last at No. 50…