FLORIDA - As inflation poses increasing challenges for entrepreneurs, Florida has been named the best state to start a business in 2025.
According to a new report by WalletHub, the personal finance platform analyzed all 50 states based on 25 key indicators of startup success, including financing accessibility, labor costs, and office-space affordability.
Florida’s standout performance is driven by factors like strong business growth rates and a favorable tax climate.
The Sunshine State ranked 1st overall, cementing its reputation as a hotspot for entrepreneurs.
Florida's rankings in key startup metrics:
- 4th in Average Growth of Small Businesses
- 16th in Labor Costs
- 13th in Availability of Human Capital
- 21st in Average Length of Work Week
- 25th in Cost of Living
Florida boasts the 11th-highest business revenue growth rate and the 10th-lowest corporate tax rates in the country, making it an attractive destination for entrepreneurs.
Despite being a popular retirement destination, the state’s workforce is thriving, with its working-age population (16-64) growing faster than in all but six states.
Additionally, Florida ranks 3rd nationally for worker enthusiasm and commitment, a key driver of productivity and innovation.
The report underscores Florida’s unique combination of affordability, growth opportunities, and an expanding labor force.
Entrepreneurs can benefit from a business-friendly environment that supports scalability and success, even in a challenging economic climate.
As startup failure rates hover around 20% within the first year, Florida’s top ranking offers hope for aspiring business owners seeking an edge in 2025.