Texas ranked ‘2nd Best State for Entrepreneurs in 2025’ - report

THE WOODLANDS, TX – A new study has ranked Texas as the number 2 best state for entrepreneurs in 2025, marking a fall of one spot compared to last year’s rankings.

American entrepreneurship is booming, with unprecedented growth and generational shifts driving new opportunities. The Treasury Department reports that 430,000 new businesses opened each month in 2024, a 50% increase since 2019. Innovations like remote work, the gig economy, and AI are fueling this transformation, creating entrepreneurial hot spots across the nation.

Simplify LLC released its annual study on the Best & Worst States for Entrepreneurs in 2025 using the most recent data from the Census Bureau, Bureau of Economic Analysis, Tax Foundation, and the U.S. Senate.

The rankings were determined by analyzing six key categories in all 50 states and D.C.: corporate tax rate, inflation, consumer spending growth, job creation rate, and net migration of educated workers.

Key findings in the story included the note that Texas dropped one spot despite a solid 5.5-point increase in job creation, reaching a rate of 17.3 (8th in the U.S.). However, new business growth took a significant hit, plummeting 32.1 points to -8.4%, ranking 36th overall. Worker mobility also declined, though it still remained higher than most states. The state attracted 61,778 educated adults, a decrease of 13,805 from the previous year, but still good for 2nd place. Texas continued to be a business-friendly environment with no corporate income taxes.

In order, the 10 Best States for Entrepreneurs in 2025 were: Washington, Texas, Maine, Nevada, Oregon, Florida, Rhode Island, Colorado, Vermont, and Hawaii.

The full report can be found at https://www.simplifyllc.com/best-and-worst-states-for-entrepreneurs-2025/.