The Most Entrepreneurial States in America 2025

• Wyoming ranks as America’s most entrepreneurial region, with locals showing the highest interest in starting new businesses.

• Top entrepreneurial states file almost twice as many business applications compared to the national average.

• Nevada emerges as the safest place to start a business, with an 83% startup survival rate.

Americans filed over 5.2 million business applications in 2024, continuing a four-year trend of historically high entrepreneurial activity across the United States. A new study by Wave Connect analyzed business environments across all 50 U.S. states to identify where entrepreneurial activity is thriving most.

The research evaluated each state using six factors: new business formation, existing business density, entrepreneurial motivation, job creation by startups, survival rates, and public interest in business formation. All metrics were adjusted per 100,000 people for fair comparison, with each factor given different importance levels to create an overall entrepreneurship score.

Here's a look at the top 10 most entrepreneurial U.S. states:

You can access the complete research findings here.

Wyoming ranks first as the most entrepreneurial region in America. The state filed 10,000 business applications last year - over six times the national average. Wyoming operates more than 8,600 existing businesses per capita, while 85% of its entrepreneurs launch ventures by choice rather than necessity. Wyoming residents also demonstrate the most interest in business formation, and the state maintains a 77% startup survival rate.

Montana takes second place, ranking third nationally in employment creation by new companies at 4.1%. The state registers over 2,400 business applications and hosts nearly 6,700 companies. 8 out of 10 Montana entrepreneurs start businesses out of entrepreneurial spirit, while posting an 81% startup survival rate. Residents also display strong enthusiasm for entrepreneurial guidance online.

Utah secures third position, with 9 out of 10 entrepreneurs starting businesses by motivation - the highest rate in America. The state generates approximately 1,900 business applications and sustains over 4,500 existing companies. Utah delivers solid job creation through startups, with 82% of new businesses surviving their first year. Local interest in starting a new business remains consistently high among residents.

Delaware holds fourth place, recording the second highest business applications at over 5,400 requests. The state shows around 6,400 current companies and demonstrates 80% opportunity-driven entrepreneurship. 82% of new companies in Delaware survive the first year, while the state residents are actively looking for ways to start their own ventures.

Colorado earns fifth place in entrepreneurship ranking. The state processes over 2,200 business applications, now hosting more than 6,400 companies. Most Colorado entrepreneurs are entrepreneurship-driven and employ a considerable number of local workers. Colorado has an excellent 82% startup survival rate, while residents show the second-highest entrepreneurial curiosity nationwide.

Florida takes sixth position, leading major states with strong entrepreneurial sentiment among residents. Florida handles over 2,700 business registration requests and has around 6,700 companies - one of the densest concentrations among top performers. The state demonstrates strong job creation by new companies at 4.0% and posts an 80% startup success rate. 

Idaho ranks seventh, with 89% of business owners starting companies from opportunity rather than desperation - falling behind only Utah and North Dakota. The state receives 1,500 new business filings and currently operates 5,000 companies. Idaho excels as the second-best state for jobs created by new ventures and maintains an 81% startup survival rate. 

California holds eighth place, achieving the nation's highest rate of employment by new businesses at 4.3%. The state processes over 1,300 startup registration requests. California hosts more than 5,200 companies, and 78% of local owners say they started their business by entrepreneurial drive. The state also records an outstanding 83% startup success rate. 

North Dakota occupies ninth position, with 9 out of 10 entrepreneurs starting businesses out of entrepreneurial spirit - tying Utah for the highest rate nationwide. The state generates over 1,000 business applications. It also hosts nearly 6,700 existing companies - among the nation's highest concentrations. North Dakota shows a 78% startup survival rate, while residents exhibit strong interest in entrepreneurial opportunities.

Nevada completes the top ten, processing nearly 1,900 business applications and operating over 4,400 companies. The state demonstrates 76% opportunity-driven entrepreneurship with a solid workforce employed in young companies. Nevada has the highest startup success rate among all ranked states at 83% while locals actively search for ways to start new businesses.

"The study highlights several different patterns in entrepreneurial activity across America," George El-Hage, Founder & CEO at Wave Connect. “Smaller states consistently rank higher in business formation and survival rates compared to larger population centers. The data shows that states with higher rates of opportunity-driven entrepreneurship tend to perform better overall. What also stands out is the variation in startup survival rates among different regions. While the general picture doesn’t show huge differences across the states, it still suggests that local conditions can determine business success."