IN OTHER NEWS – A new study finds that Georgia ranks in the top ten states in America for starting a successful business in 2025.
Release:
- A new report from Swoop Funding reveals the top states in America for starting a successful business in 2025.
- The report analyzes various data factors such as sales tax rates, office rental costs, coworking space availability, and business survival rates to rank all US states based on their suitability for startups.
- Experts at Swoop Funding offer essential tips for budding entrepreneurs on how to successfully start a business.
With 670,000 small businesses launched each year*, running a startup remains a dream for many Americans. However, it’s not without challenges as 21% of small businesses fail within their first year, and only 25% last beyond the 15-year mark**.
A new report by Swoop Funding has revealed the best states in America for launching a successful business.
Using eleven comprehensive data factors, including Venture Capital (VC) investments, sales tax rates, health insurance costs, and the availability of coworking spaces, each state was awarded a ‘startup score’ out of 100.
According to the figures, Georgia is the 9th top state for aspiring entrepreneurs in 2025.
#9 Georgia – Total Score: 51.27
Coworking Spaces: 215
Population: 11.0M
Unemployment Rate: 3.6%
Cost of Living Index: 90.8
Sales Tax: 7.38%
Income Tax Free Allowance: $12,000
VC Investments: $1.6B
Business Survival Rate: 49.2%
Number of Entrepreneurs: 19,233
Average Hourly Wage: $31.58
Health Insurance Costs: $6,121/year
Office Rent (Sqft/Year): $26.94
The Best States for Startups in 2025:
Rank State ‘Startup Score’ out of 100 1 Texas 55.31 2 Ohio 54.93 3 North Carolina 54.64 4 Mississippi 53.75 5 Florida 53.67 6 Wisconsin 52.05 7 Pennsylvania 51.76 8 Montana 51.29 9 Georgia 51.27 10 Tennessee 50.79 11 Michigan 50.61 12 Iowa 49.56 13 North Dakota 49.12 14 Alabama 48.74 15 South Dakota 48.59
According to the data, Texas is officially the best state to launch a business in 2025 taking the top spot with a total startup score of 55.31.
Known for its strong economy and booming business sectors, Texas is home to “Silicon Hills” in Austin and major industries in Dallas, including healthcare and finance.
The state boasts the highest number of coworking spaces (280) and ranks #1 for business support quality. With $6.66 billion in annual venture capital investment and a 53% business survival rate beyond five years, Texas offers a strong foundation for budding entrepreneurs.
Following close behind is Ohio who ranks in second place. With the cheapest office rent in the country ($14.82 per square foot) and 55% of businesses surviving past five years, Ohio scores 54.93 in the rankings. Its affordable operational costs and 197 coworking spaces make it an attractive destination for startups.
North Carolina rounds out the top three, boasting the 7th highest business survival rate and ranking 9th for the number of entrepreneurs by state. With 233 coworking spaces – the 5th highest in the country and more than double the national average, North Carolina achieves a total score of 54.64.
Top Tips for New Entrepreneurs: Best Practices for Starting Your Business
Andrea Reynolds, CEO of Swoop Funding, shares her tips for entrepreneurial success.
“The key to a small business is to outline your goals and be prepared. Once you’ve taken your first steps towards starting your business, an effective plan for your future and the ability to adapt are the differences between a small business that lasts and one that fails shortly into its life.
“A business grant can be exactly what’s needed to give your startup the platform it needs to grow. There are numerous options to choose from, so research wisely and find the loan that suits your project best.”
For those ready to maximize their chances for startup success in 2025, here are three key tips from the Swoop experts to help you start off strong:
- Choose the Right Business Structure
Start by carefully selecting the structure of your business, whether it’s a sole proprietorship, partnership, or limited liability company (LLC). This decision will impact everything from taxation to liability down the line.
It’s crucial to open a separate business bank account to clearly divide personal and business finances.
- Take Advantage of Low-Cost Startup Loans
The Small Business Administration (SBA) offers several government-backed loans, most of which are targeted at established businesses. However, there are options tailored to new businesses such as micro loans up to $50,000 or express loans up to $500,000.
It’s also not uncommon to take out a personal loan for new business purposes.
- Explore all Financial Options
There are many financial resources available to help you find products tailored to your business needs, including specialized loans for eCommerce, cyber insurance, and commercial mortgages.
If traditional banks decline your application, it doesn’t necessarily reflect the strength of your business plan.
Instead, seeking alternative funding options can provide valuable support for your business by allowing you to compare tailored financial products, such as specialized loans.
Swoop is committed to helping businesses navigate the funding landscape, ensuring new entrepreneurs find the resources that best meet their needs while guiding them through the various alternatives available.
For more information on the report, please visit https://swoopfunding.com/us/blog/startup-capitals-of-america
