Tennessee is 10th best state to start a business in 2025
That's according to a new report from Swoop Funding.
What is the 10th best state in which to start a business in 2025?
If you said Tennessee, you would be correct, according to a new report by Swoop Funding that reveals the best states in America for launching a successful business in the brand new year. By analyzing 11 key factors, including venture capital investments, sales tax rates, health insurance costs, and the availability of co-working spaces, each state was awarded a “start-up score” out of 100.
According to the data, Texas is officially the best state to launch a business in 2025, taking the top spot with a total start-up 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 co-working spaces (280) and ranks #1 for business support quality. With $6.66 billion in annual venture capital investment and a 53 percent business survival rate beyond five years, Texas offers a strong foundation for budding entrepreneurs.
Following close behind is Ohio which ranks in second place. With the cheapest office rent in the country ($14.82 per square foot) and 55 percent of businesses surviving past five years, Ohio scores 54.93 in the rankings. Its affordable operational costs and 197 co-working spaces make it an attractive destination for start-ups.
North Carolina rounds out the top three, boasting the seventh-highest business survival rate and ranking ninth for the number of entrepreneurs by state. With 233 co-working spaces – the fifth highest in the country and more than double the national average, North Carolina achieves a total score of 54.64.
Tennessee placed 10th with a total score of 50.79, broken down as follows:
- Population: 7.1 million.
- Unemployment Rate: 3.3 percent.
- Cost of Living Index: 90.3.
- Sales Tax: 9.55 percent.
- Income Tax Free Allowance: $0.
- VC Investments: $1.57 billion.
- Business Survival Rate: 52.0 percent.
- Number of Entrepreneurs: 7,558.
- Average Hourly Wage: $30.07.
- Health Insurance Costs: $5,833/year.
- Office Rent (Sqft/Year): $16.53.
- Co-working Spaces: 157.
Like what you've read?
Forward to a friend!