California named fourth best state for business owners in 2024

The research, conducted by leading law firm Schmidt & Clark, examined state-wide data on the number of business applications and the year-on-year change between November 2022 and 2023, the annual change of real gross domestic product (GDP) in quarter three of 2023, regional unfriendly customer ratings, and business failure rates within one year as of March 2022. The final index scores reveal the best states to start a business in 2024.   

Wyoming takes the crown, with the study assigning the state a final index score of 76.19 out of 100. The state had 907 business applications between November 2022 and 2023, 39% higher than the previous year, more than any other state, and 517% higher than the national average. There was also a 6% change in GDP in the third quarter of 2023, which is 26% higher than the national average.   

With a final index score of 61.48 out of 100, Nevada is the second-best state for business owners. In the state, the annual change of GDP was 7% in quarter three of 2023, 47% higher than the national average. Also, only 19% of the state’s businesses failed within one year, meaning businesses are 16.6% more likely to succeed in Nevada.   

Texas takes third place, with a final index score of 61.18 out of 100. The number of business applications in the state rose 24% between November 2022 and 2023. Texas has also seen an 8% GDP rise in the third quarter of 2023, 68% higher than the national average.   

According to the study, California is the fourth-best state to start a business in 2024, with a final index score of 58.65 out of 100. The state has a regional unfriendly customer rating of 92 out of 100, compared to the national average of 93.29 out of 100, with the lowest number being the friendliest. California also has the lowest rate of business failures within one year at 13%, 41% lower than the national average.   

Pennsylvania ranks fifth with a final index score of 58.49 out of 100. Pennsylvania saw a 33% rise in annual business applications between November 2022 and 2023, 213% higher than the national average and the second highest out of the top 10 states to start a business.   

The research reveals that Oregon is the sixth-best state, with a final index score of 56.53 out of 100. The state had 123 business applications per 100,000 people between March 2022 and 2023, a 28% change from the previous year and an unfriendly customer rating of 93 out of 100.   

Oklahoma ranks seventh with a final index score of 56.51 out of 100. In the state, 21% of businesses failed within one year as of March 2022, compared to the national average of 22.17%. Oklahoma has also seen a 6% rise in annual GDP, 26% higher than the national average.   

Kansas ranks eighth, with a final index score of 53.93 out of 100. Kentucky follows in ninth place, with a final index score of 53.82 out of 100, and South Dakota is in tenth place, with a final index score of 53.73 out of 100.   

A spokesperson for Schmidt & Clark has commented on the study: “Business is the driving force of America. In fact, small businesses generate 1.5 million jobs per year in the United States, according to research.  

“This study names Wyoming as the best state for businesses in 2024. The state has more business applications than any other, with 907 submitted between March 2022 and 2023, making it the number one hot spot for entrepreneurs.” 

Table: The best states for business owners in 2024 

*The number of business applications and year-on-year change, real gross domestic product, unfriendly customer ratings and business failure rates have been rounded to the nearest whole number. 

If using this information, please credit https://www.schmidtandclark.com/. Thank you! 

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