Free Top 10 U.S. States by Small Business Formation Rate (2020-2025) Chart
The chart presents the top U.S. states by small business growth rates from 2020 to 2025, underscoring entrepreneurial expansion and regional economic momentum. Wyoming leads the rankings with a remarkable 14.3% formation rate, benefiting from low taxes, minimal regulations, and a highly favorable business climate that attracts startups. Nevada follows closely, recording strong small business growth linked to tourism recovery, logistics expansion, and population influx. Delaware, long recognized for its pro-business legal environment, secures third place, maintaining steady growth through favorable incorporation policies. Florida ranks fourth, driven by an influx of entrepreneurs and remote workers establishing new ventures in a tax-friendly environment. Montana and Colorado demonstrate comparable formation rates, propelled by expanding local markets and post-pandemic revitalization of small enterprises. Utah and Idaho showcase steady increases, supported by tech-driven ecosystems and small-scale innovation. Washington and Oregon round out the list, reflecting balanced growth through diversified industries and supportive state programs. Overall, the data highlights how business-friendly regulations, low taxation, and adaptive economic strategies contribute to the rapid pace of small business creation across these leading states from 2020 to 2025.
| Labels |
2020-2025 Formation Rate (%) |
| Wyoming | 14.3 |
| Nevada | 13.5 |
| Delaware | 13.2 |
| Florida | 12.1 |
| Montana | 12 |
| Colorado | 11.8 |
| Utah | 11.4 |
| Idaho | 11.3 |
| Washington | 11 |
| Oregon | 10.8 |
