Any experienced entrepreneur will tell you that starting a business is no easy thing. It takes time and effort to get a project off the ground, and even then they sometimes fail. In fact, according to one recent study, approximately 93% of start-up companies eventually fail, nationwide. So why even try?

One factor that greatly influences your chances of success is location. Many entrepreneurs don’t take this factor into account enough. They think that because they have an earth-shattering idea, it will be successful, regardless of where it originates. However, not every state is the same. Some companies will succeed in certain locations while they may fail in others.

If you have had trouble in the past, it may be worth considering the following 5 locations. They are currently regarded as some of the best places in the nation to start a company.


In one well-respected poll, Texas cities Dallas-Fort Worth, Austin and San Antonio were named in the top three of four of the friendliest states for small business. The same study gave the state an A plus on a grading system that included factors such as ease of starting a business, hiring costs, government regulations, and training programs. Over half of the private sector jobs in the state come from its 2.2 million small businesses. Not to mention, their STEM jobs are on the rise, up to 34,000. These primarily include jobs in the computer and IT field. Any Sernovitz, the CEO of online marketing company said one of the reasons he loves Texas is its family friendly environment, great public schools and tax breaks.


Not far from the lone star state, Arizona is another leader in entrepreneurship. An example of the state’s friendliness to new business is the annual Arizona Innovation Challenge. As the contests website explains, the challenge awards more money than any other state ($3 million) to the most promising technology ventures. Any single company can earn $100,000 to $250,000. The state government also helps by offering tax credits through its Angel Investment Program, which has been promised $20 million in funding for the next three years.


While Texas has some of the best cities to work in, Utah was recently ranked the overall best state to start a business. Since 2006 Utah’s economy has grown 2.3% each year as opposed to the national growth rate of 0.5%. The University of Utah is home to The Utah Science, Technology and Research Initiative (USTAR) a program that focuses on bringing cutting edge technology into the marketplace. Last year the initiative received $6 million in funding for research. Several companies in Utah have received significant attention in recent years, including Vivint, a home security and automation company based out of Provo, Utah, which was recently listed on Forbes Most Promising Companies List. Other successful stories in Utah include Domo and Novell.


This state stands out by having the highest number of STEM of jobs of any state in the country. This is in large part due to the Center for Innovative Technology (CIT), which was formed all the way back in 1985. The center does just what the name implies, promotes technology-based jobs. The state also has the highest number of IT jobs in non-IT industries. It has low taxes (in the top 10 for lowest consumption taxes) and is known for its high spending. Finally, its mix of highly educated workers and cutting edge technology make it an ideal place for many startups.


The state’s unusually high population growth (13% from 2000 to 2007) is evidence that it is doing something right. Part of it may be the fact that the state has one of the most educated work forces in the country. An indication of their success in the marketplace is the fact that it was ranked fourth in patents offered per 1,000 workers. Income, spending, and property taxes also all play a big role in making it friendly to startups. Colorado has many fast growing companies, including Amadeus Consulting, comCables, and Kutenda.