Starting a business from scratch isn’t for the faint of heart, but some states make it easier for founders to find success than others.

A recent study by Swoop Funding ranked US states based on 11 metrics, including venture capital (VC) investments, sales tax rates, health insurance costs and availability of coworking spaces, and found that these are the top states in the country for start a business:

1) Texas

In an aerial view, the downtown skyline is seen on April 11, 2023 in Austin, Texas. ((Photo by Brandon Bell/Getty Images)/Getty Images)

“Texas is a magnet for entrepreneurs with its zero state income tax, low cost of living and business-friendly regulations,” said Andrea Reynolds, CEO of Swoop Funding. FOX business. “Austin’s ‘Silicon Hills’ attracts top tech talent, while Houston and Dallas lead in energy, logistics and fintech. The state’s strong startup support network and universities create an ideal launch pad for to growth”.

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2) Ohio

Reynolds says Ohio is emerging as an affordable startup hub with strong investments in industries like healthcaremanufacturing and food technology.

“Programs like the Ohio Venture Fund and OhioXcelerate provide vital funding and mentorship, supported by top universities and accelerators, creating a diverse and collaborative environment for growth,” he noted.

3) North Carolina

Aerial view of downtown Charlotte, North Carolina (iStock/iStock)

North Carolina has built a strong startup ecosystem fueled by top research universities and a highly skilled workforce, says Swoop Funding CEO.

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“The state is a leader in biotech, life sciences and clean energy, with rising venture capital investment making it an attractive alternative to traditional startup hubs.”

4) Mississippi

Mississippi supports startups through initiatives like CoBuilders, supported by partners like Microsoft, offering mentorship and funding.

The state’s focus on the blue economy and its low operating costs make it an attractive destination for innovative companies, Reynolds explained.

5) Florida

View of the cruise ship in the port of Miami, Florida. (Visions of America/Joseph Sohm/UCG/Universal Images Group via Getty Images/Getty Images)

Stateless income tax and strong international ties, Florida offers founders great opportunities to scale.

“Florida has quickly become an important startup destination, especially in fintech and blockchain,” said Reynolds. “Miami is now a global center for digital finance, while Orlando and Tampa are thriving in gaming, tourism and healthcare.”

Reynolds says what the Swoop study shows is that there is no single formula for startup success. Some states, such as Texas and Florida, stand out for their tax advantages and business-friendly environments, while others, such as North Carolina and Ohio, offer cost-effective solutions and skilled labor.

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“Entrepreneurs should look beyond funding opportunities and consider how each state’s strengths align with their business needs,” he added. “Choosing the right location can make all the difference to successful scaling.”