Entrepreneurship offers a pathway to financial freedom, yet the eagerness to establish new businesses varies significantly across the United States. According to a recent report by digital marketing site DesignRush, different states are witnessing varying degrees of new business initiation. Employing data from the U.S. Bureau of Labor Statistics (BLS), DesignRush highlights the top five states based on the noticeable growth in business establishment between September 2022 and September 2023.
Leading the pack is Oregon with a remarkable 9.9% rise in new businesses, increasing the count from 185,096 in 2022 to 203,369 in 2023. Following closely is Montana, experiencing a 9.4% surge, making the total number of businesses 66,947 by 2023. Michigan is not far behind, boasting an 8.9% increase, adding 26,612 new businesses over the year. Hawaii recorded an 8.6% growth while Tennessee exhibited an 8% rise year-over-year. Gianluca Ferruggia, DesignRush's general manager, notes the diversity in the states leading the rankings, suggesting that this indicates a robust environment for entrepreneurs across the nation.
The trends reflect that various strategies can effectively nurture business development. Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, emphasizes the myriad ways states can attract and retain new enterprises. He points out that while some states leverage lower taxes and deregulation, others enhance their economic infrastructure through partnerships and improved education systems, thus offering a more skilled workforce to employers.
A common strategy across these states is streamlining the process of starting and maintaining a business by providing incentives. Kevin Thompson, an expert in finance and founder of 9i Capital Group, underscores that tools such as startup funding, financial incentives, and online registration portals are pivotal in empowering entrepreneurs. For instance, Tennessee has introduced a $70 million fund aimed at boosting its entrepreneurship ecosystem.
By offering tax credits and grants, particularly in promising sectors like technology and green energy, states actively advocate for the growth of small businesses, as highlighted by Thompson. As these strategic measures continue to unfold, it will be intriguing to observe how other states may rise in their support for new business ventures.
