1. North Dakota
North Dakota holds the top spot from 2023 and remains the best state to start a business in 2024. Its business environment is particularly welcoming, with a formation fee of just $135, making the barrier to entry relatively low for new businesses. This fee is an important consideration for entrepreneurs who are concerned about start-up costs. The state’s business survival rate, sitting at a healthy 77%, reflects a supportive and resilient environment where businesses have a better chance of thriving.
The state’s appeal is enhanced by a cost index of 0.94, below the national average, and a significant portion of its population, 64%, falling within the working age range. These factors, along with its perfect scaled score of 100, highlight North Dakota’s overall suitability for new businesses, combining economic feasibility with a strong labor market. The state not only offers financial incentives but also provides a solid foundation for workforce development, ensuring that entrepreneurs have access to a skilled and competent workforce.
2. Indiana
Indiana ranks second as the most favorable state to start a business in 2024. Its business-friendly environment is highlighted by a modest formation fee of $100, which lowers the barrier to entry for new companies. The state also maintains a solid business survival rate of 77%, reflecting a stable and nurturing environment for business growth. Additionally, the average funding available for a small business in Indiana is remarkable, at $24,502, indicating a supportive financial environment for entrepreneurs.
Indiana’s economic appeal goes beyond business statistics. The state boasts a cost of living of 0.91, significantly lower than the national average, making it an economically attractive location for both business owners and their employees. The state’s demographic composition further adds to its attractiveness, with 64% of its population in the working age bracket, indicating a substantial labor pool. All of these factors contribute to Indiana’s impressive scaled score of 98 out of 100, making it an excellent choice for business ventures.
3. Arkansas
Arkansas is an extremely beneficial state to start a business, with several noteworthy factors. The state offers an exceptionally low business formation fee of just $45, one of the lowest in the country, reducing the initial financial burden for new businesses. Arkansas has a business survival rate of 78%, suggesting a supportive environment that helps sustain and nurture new businesses.
It is equally supportive of small businesses, offering each an average of $23,463 in funding through grants and other programs, reflecting a commitment to business growth. The state also boasts a cost-effective living environment, with a cost of living index of 0.89 lower than many other states. This economic efficiency extends to both businesses and employees. Combined with a workforce where 64% is of working age, Arkansas provides fertile ground for new businesses, balancing affordability with a ready labor pool. Its scaled score of 93 out of 100 further confirms these qualities.
4. South Dakota
South Dakota makes a compelling case for entrepreneurs, combining several key attributes that help promote business growth and success. State formation fees are set at $150, which balances affordability with access to a range of business services. A notable aspect of South Dakota’s business climate is its survival rate of 74%, indicating a supportive environment for sustaining and growing new businesses.
Financial support for small businesses in South Dakota is particularly strong, with an average of $32,477 available per business, indicating healthy investment in business development through grants and other programs. The state’s livability index is 0.92, below the national average, suggesting economic benefits for both businesses and their employees. Additionally, 62% of South Dakota’s population is of working age, providing a reliable labor force. With a scaled score of 85 out of 100, South Dakota demonstrates a balanced combination of affordability, business support and workforce readiness, making it a favorable location for new business ventures.
5. North Carolina
North Carolina offers a combination of supportive business elements. State formation fees are set at a reasonable $125, which strikes a balance between accessibility and quality service. A key benefit for entrepreneurs is the business survival rate of 77%, suggesting a nurturing and stable environment for startups. This rate reflects the resilience and potential for business growth in the state.
Financially, North Carolina is ready to help small businesses, offering an average of $22,019 in funding through grants and incentives. This level of support reflects the state’s investment in promoting business ventures. The cost of living index here is 0.96, which is in line with the national average and ensures affordability for business owners and workers alike. With 65% of its population in the working age category, North Carolina provides a large labor pool. The state’s scaled score of 84 out of 100 reflects these combined advantages, making it a viable and promising location for new businesses.
Credit : www.forbes.com
