IN OTHER NEWS – New data using labor statistics reveals that Georgia ranks in the top 10 worst states for entrepreneurial success.
Release:
- Virginia tops the list with the lowest rate of entrepreneurial success, with a -5% decline in businesses between 2022 and 2023.
- Maryland and Iowa are in second and third, respectively.
- Georgia comes in sixth.
- Oregon experienced the highest rate of entrepreneurial success, with a 9.90% increase in businesses between 2022 and 2023.
A new study has revealed the worst states in America for entrepreneurial success, with Virginia taking the top spot.
Digital marketing site DesignRush analyzed data from the US 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 lowest percentage increase of businesses over the year determined the ranking.
Virginia ranks top, with a -5% decrease in business establishments over the course of the year. Virginia reported a total of 332,311 businesses in 2022 and 315,789 in 2023 for a net change of -16,522.
Coming in second place is Maryland, with a -1.10% loss in businesses over the 12 months. The state had 192,089 businesses in 2022 and fell to 190,061 in 2023 for a net change of –2,028.
Third in the ranking is Iowa, with a -0.60% fall in businesses during the year. From 111,209 establishments in 2022, Iowa dropped to 110,489 in 2023 for a net change of -720.
Nebraska and New Mexico place fourth, with only a 0.80% increase in business establishments over the course of the year. Nebraska reported a total of 77,684 businesses in 2022 and 78,276 in 2023 for a net increase of 592. New Mexico’s businesses increased from 67,416 in 2022 to 67,945 in 2023, an increase of 529.
In fifth comes Massachusetts, with a 1.30% gain in businesses over the 12-month period. The state had 292,183 businesses in 2022 and grew to 295,840 in 2023 for a net increase of 3,657.
Georgia and Pennsylvania come in sixth, both with a 1.70% increase in businesses between 2022 and 2023. From 385,912 establishments in 2022, Georgia climbed to 392,511 in 2023 for a net increase of 6,599. Pennsylvania saw an increase from 386,032 businesses in 2022 to 392,516 for a total change of 6,484.
Seventh on the list is South Dakota, with a 1.80% increase in business establishments over the course of the year. South Dakota reported a total of 39,088 businesses in 2022 and 39,796 in 2023 for a net increase of 708.
In eighth place is Utah and Washington, both with a 1.90% gain in businesses over 12 months. Utah had 134,566 businesses in 2022 and grew to 137,165 in 2023 for a net increase of 2,599. Washington increased from 238,048 in 2022 to 242,604 in 2023 for a change of 4,556.
New York ranks ninth, with a 2% rise in businesses during the year. From 687,992 establishments in 2022, New York climbed to 701,801 in 2023 for a net increase of 13,809.
Landing the tenth spot is Minnesota, with a 2.10% increase in business establishments over the course of the year. The state reported a total of 202,076 businesses in 2022 and 206,378 in 2023 for a net increase of 4,302.
Oregon experienced the highest rate of entrepreneurial success, with a 9.90% increase in businesses over the 12-month period. The state had 185,096 establishments in 2022 and grew to 203,369 in 2023 for a net increase of 18,273.
The ten states with the lowest rate of business growth (2022 –2023)
| Rank | State | Registered businesses (2022) | Registered businesses (2023) | Net change | Change in number of businesses between 2022 – 2023 (%) |
| 1. | Virginia | 332,311 | 315,789 | -16,522 | -5.00% |
| 2. | Maryland | 192,089 | 190,061 | -2,028 | -1.10% |
| 3. | Iowa | 111,209 | 110,489 | -720 | -0.60% |
| 4. (=) | Nebraska | 77,684 | 78,276 | 592 | 0.80% |
| 4. (=) | New Mexico | 67,416 | 67,945 | 529 | 0.80% |
| 5. | Massachusetts | 292,183 | 295,840 | 3,657 | 1.30% |
| 6. (=) | Georgia | 385,912 | 392,511 | 6,599 | 1.70% |
| 6. (=) | Pennsylvania | 386,032 | 392,516 | 6,484 | 1.70% |
| 7. | South Dakota | 39,088 | 39,796 | 708 | 1.80% |
| 8. (=) | Utah | 134,566 | 137,165 | 2,599 | 1.90% |
| 8. (=) | Washington | 238,048 | 242,604 | 4,556 | 1.90% |
| 9. | New York | 687,992 | 701,801 | 13,809 | 2.00% |
| 10. | Minnesota | 202,076 | 206,378 | 4,302 | 2.10% |
Gianluca Ferruggia, General Manager at DesignRush, commented on the findings:
“There are many factors that determine whether a business will take off, location being a big one. At least five of the leading ten states are on the East side of the country. This could indicate that it’s extremely competitive in this region or, alternatively, that the West in more suited for entrepreneurs and their fresh ideas. Perhaps new states will make the ranking in the future.”
