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The States with the Highest Percentage Increase in Businesses

by Andreas Voniatis

 

  • Maryland ranks first with an 11.60% increase in the number of business establishments 
  • California places second with an 8.96% increase in businesses 
  • Montana ranks bottom, with a 3.63% decrease in the number of business establishments 

A new study has identified the states with the highest percentage increase in businesses with Maryland placing first. 

New research by growth experts Artios.io analyzed data on the increase in business establishments across all US states to determine which states experiencing the highest growth in business numbers.

Maryland leads the nation with an impressive 11.60% increase in the number of business establishments. The state’s focus on supporting small businesses and startups, as well as its strategic initiatives to attract entrepreneurs, contributes to its business-friendly reputation. Maryland’s close proximity to a major economic hub in Washington D.C. is also a massive positive for business owners. 

 

States with the Highest Percentage Increase in Business Growth 

Rank  State  June 2023 Business Establishments  June 2024 Business Establishment  Net Increase  % Increase 
1  Maryland  188,639  210,526  21,887  11.60% 
2  California  1,724,095  1,878,565  154,470  8.96% 
3  Idaho  93,395  101,045  7,650  8.19% 
4  Tennesse  217,204  234,917  17,713  8.16% 
5  Michigan  320,899  345,090  24,191  7.54% 
6  New Jersey  315,822  338,458  22,636  7.17% 
7  South Carolina  176,096  188,430  12,334  7.00% 
8  Vermont  31,058  32,808  1,750  5.63% 
9  Wisconsin  197,768  208,458  10,690  5.41% 
10  Kansas  95,699  100,865  5,166  5.40% 

 

In second place is California, with an 8.96% increase and a huge net increase of 154,470 businesses. Known for its innovation hubs in Silicon Valley and diverse economy, California remains a magnet for entrepreneurs and business owners across various sectors, particularly technology, entertainment, and agriculture. 

Idaho ranks third with an 8.19% increase in businesses. The state’s low tax rates, affordable cost of living, and tax incentive programs aimed at supporting small businesses and startups make it an attractive destination for entrepreneurs. 

Tennessee ranks fourth, with an 8.16% increase in businesses. The state’s focus on infrastructure improvements and its business-friendly regulatory environment have contributed to its economic expansion, especially in the automotive and manufacturing industries. 

Michigan ranks fifth with a 7.54% increase in businesses. The state’s investment in manufacturing, technology, and automotive industries, coupled with efforts to support small businesses, makes it an attractive location for many business owners. 

New Jersey places sixth with a 7.17% increase in businesses. New Jersey’s favorable location near key markets in Philadelphia and New York and its robust transport network make it an ideal location for many businesses. 

In seventh place is South Carolina, with a 7% increase in businesses. The state’s growing aerospace industry and focus on creating jobs through refundable tax credits make it a great location for growing enterprises. 

Ranking eighth is Vermont with a 5.63% increase in businesses. Vermont’s focus on sustainable business practices continues to be a huge positive for many entrepreneurs.

In ninth place is Wisconsin with a 5.41% increase in businesses. The state’s investment in agriculture and manufacturing industries, along with favorable tax incentives, make it an ideal location for many small to mid-sized businesses. 

Rounding out the top ten is Kansas with a 5.4% increase in businesses. Kansas has become an ideal environment for business owners with its High-Performance Incentive Program (HPIP) as well as various other tax incentives. 

 

Andreas Voniatis, Founder and CEO of Artios.io, commented on the study:
“This study highlights the dynamic shifts in the US business landscape and underscores the importance of creating supportive ecosystems for entrepreneurs. States like Maryland and California demonstrate how strategic investments in infrastructure, incentives, and innovation hubs can drive significant business growth.

“By fostering environments that encourage entrepreneurship and small business expansion, these states are not only stimulating local economies but also paving the way for long-term economic resilience and job creation.” 

 

-ENDS- 

 

If using these insights, please link credit to https://www.artios.io/the-states-with-the-highest-percentage-increase-in-businesses who conducted the research for this study.

Methodology 

The states with the best business growth were calculated and ranked. 

The number of business establishments by state for June 2023 and June 2024 were gathered from BLS (https://www.bls.gov/charts/county-employment-and-wages/percent-change-est-by-state.htm). 

Per state, the net increase and percentage increase over that time was calculated. The percentage increase was ranked from highest to lowest. 

 

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