A new report reveals that smaller states are leading the nation in entrepreneurial activity, with Wyoming emerging as the top state for startups in 2024. The findings come as over 5.2 million new business applications were filed nationwide this year, reflecting continued strong interest in entrepreneurship across the U.S.
The data, compiled by financial software firm Wave, ranks all 50 states based on a weighted “Entrepreneurship Strength Index.” The index evaluates six key metrics: new business applications, existing business density, job creation by startups, first-year survival rates, opportunity-driven entrepreneurship, and online interest in “how to start a business.” Each metric was adjusted for population to ensure fair comparisons.
Wyoming Leads the Pack
Wyoming claimed the top spot with a staggering 10,000 new business applications per 100,000 residents—over six times the national average. The state also reported one of the highest startup survival rates at 77%, alongside strong online search interest in entrepreneurship and a high percentage (85%) of business owners who launched companies by choice rather than necessity.
“Wyoming’s startup landscape is thriving due to a strong culture of opportunity-driven entrepreneurship and supportive conditions for new businesses,” the Wave report noted.
Mountain West States Dominate Rankings
Montana secured second place, boosted by robust job creation and an 81% startup survival rate. Utah followed in third, with the highest rate of opportunity-driven entrepreneurship in the nation at 91%. Delaware and Colorado rounded out the top five, both showing high survival rates and active startup ecosystems.
Florida ranked sixth overall, demonstrating strength in business activity with 2,700 applications per 100,000 residents and a dense network of active companies. Idaho came in seventh, driven by strong job creation and 89% of founders starting businesses out of personal ambition.
California and Other Large States Trail in Per-Capita Metrics
California, long known as a tech and innovation powerhouse, ranked eighth—not for volume of startups per capita, but for its high-quality economic impact. It led the nation in job creation by startups at 4.3% and recorded an 83% survival rate, though its startup density was lower than smaller states.
Nevada, ranking tenth overall, posted the nation’s highest survival rate for new businesses at 83%. North Dakota tied with Utah for the top share of opportunity-driven founders at 91%.
Small States, Big Impact
Wave’s analysis highlights a shift in America’s entrepreneurial landscape, showing that smaller states often outperform larger ones in key startup metrics.
“Smaller states are proving to be fertile ground for new businesses,” a Wave spokesperson said. “Where people are launching ventures out of passion rather than necessity, we see stronger outcomes—higher survival rates, more job creation, and deeper community engagement.”
The findings suggest that while big states like California and New York remain economic powerhouses, the future of U.S. entrepreneurship may be shaped just as much by smaller, agile states offering lower barriers to entry and tight-knit support networks.
