New Mexico is the No. 27 best state to start a small business

A new study finds a record number of small business are opening and New Mexico is the No. 27 best state to start a small business.

A record 10 million have opened in the last two years with annual revenue reaching $13.3 trillion according to the Small Business Administration. However, only 48.9% will survive five years as owners battle inflation, recession fears and colossal shifts in how Americans work and live. In the rapidly changing landscape, some states have emerged as prime locations for entrepreneurs.

Lendio today released a study on the Best States to Start a Small Business using the most recent data from the Bureau of Labor Statistics, Census Bureau, and Small Business Administration from 2016-2023.

The rankings were determined by analyzing myriad factors including tax rates, startup survival rates, cost of living, educated worker migration, loans, funding, consumer spending, and incentive programs.

Key findings in Nevada show 50.4% of small businesses survive five years, there are 53 incentive programs, corporate tax rates are 5.9%, companies received $5.9 million in loans per 100,000 residents, and 10,246 educated workers moved into the state.

The 10 best states to start a small business in 2023:

1) Texas

• 2) Florida
• 3) Ohio
• 4) Massachusetts
• 5) North Carolina
• 6) Colorado
• 7) Oklahoma
• 8) South Carolina
• 9) Georgia
• 10) Utah

Complete state-by-state and national breakdowns are available in the complete study.