Which States Rank the Best for Starting a New Business in 2025?

A new study has revealed the best states in America for entrepreneurial success, with Oregon topping the list. 

Digital marketing site DesignRush analyzed data from the U.S. Bureau of Labor Statistics to find the change in the number of business establishments per state between September 2022 and September 2023. The states with the greatest percentage increase of businesses over the year determined the ranking.    

Oregon ranks top, with a 9.9% increase in business establishments over the course of the year. Oregon reported a total of 185,096 businesses in 2022 and 203,369 in 2023 for a net increase of 18,273.    

Coming in second place is Montana, with a 9.4% gain in businesses over the 12 months. The state had 61,185 businesses in 2022 and grew to 66,947 in 2023 for a net increase of 5,762. 

Third in the ranking is Michigan, with an 8.9% rise in businesses during the year. From 298,855 establishments in 2022, Michigan climbed to 325,467 in 2023 for a net increase of 26,612. 

Hawaii placed fourth, with an 8.6% increase in business establishments over the course of the year. Hawaii reported a total of 52,863 businesses in 2022 and 57,387 in 2023 for a net increase of 4,524. 

In a close fifth comes Tennessee, with an 8.0% gain in businesses over the 12-month period. The state had 204,873 businesses in 2022 and grew to 221,247 in 2023 for a net increase of 16,374.

Idaho, South Carolina, Mississippi, North Carolina, and Arizona rounded out the top 10 states with the greatest increase in business establishments over the course of the year.

Conversely, Virginia fell to the bottom of the ranking, with a 5% decrease in businesses over the 12-month period. The state had 332,311 establishments in 2022 and fell to 315,789 in 2023 for a net decrease of 16,522.