Stories of Technology, Innovation, & Entrepreneurship in the Southeast

Using data collected in January from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau, business travel experts at Booking.com for Business examined which states were best suited for start-ups.

The list might surprise you.

The #1 state for start-ups was Montana with what Booking.com for Business characterized as its “impressive score of 9.55 out of 10. Montana is regarded as the state with the most start-up opportunities for business travel. This is reinforced by its 10-year survival rate of over two-fifths (41 percent) for new businesses and a year-on-year increase of more than a quarter (26 percent). Montana’s supportive startup ecosystem fosters collaboration and networking through organizations like Early Stage Montana, which offers resources and mentorship. Favorable tax policies, including a 6.75% corporate income tax and no sales tax, also make the state an attractive, cost-effective choice for entrepreneurs.”

Second most friendly state for start-ups was Oregon, which logged an impressive survival rate for early stage businesses after 10 years of 36.4 percent. This may be due to the state’s extensive support system for new businesses, including ‘The Start-up Toolkit,’ a step-by-step guide to assist in navigating the start-up process.

Other states in the top 10 were:

1. Nevada (#3);
2. Utah (#4);
3. Florida (#5);
4. Wyoming (#6);
5. Idaho (#7);
6. Delaware (#8);
7. Vermont (#9); and
8. California (#10).

How were the states ranked?

To determine the state with the most business travel opportunities for start-ups, Booking.com for Business used a weighted ranking that takes into account the following factors:

1. Number of startup businesses by state;
2. Number of business applications per 100,000 population by state;
3. Year-on-year percentage change in business applications per 100,000 population by state; and
4. Year-on-year percentage change in start-up survival rates by state over the last decade.

---