Florida Ranked No. 1 for Startup Success

Realtors say the three most important things when buying property are “location, location, location.” But entrepreneurs thinking about starting a business should also be focused on where they plan to plant the seeds for success and Florida should be at the top of their list, according to a report from personal finance company WalletHub.
“Florida is the best state for starting a business in 2025, boasting the second-most startups per capita and the highest percentage of adults who engage in entrepreneurship,” the report said. “The number of small businesses in the state grew by nearly 16% between 2016 and 2022, the fourth-highest percentage in the country.”
The WalletHub compared 25 key indicators of success in all 50 states from financing accessibility to labor costs and office space availability. Florida topped the list, followed by Georgia, Utah, Texas and Idaho rounding out the Top 5.
In Palm Coast, Economic Development Manager Craig McKinney the WalletHub report confirms the growth potential for the state as well as in the region.
“Florida’s tax system ranks fourth overall on the Tax Foundation’s 2025 State Tax Competitiveness Index,” he said. “Additionally, Florida’s 0% personal income tax and 10th place ranking for lowest corporate taxes is highly attractive to individuals and businesses alike.”
Despite the conventional wisdom that the Sunshine State is a place just for retirees to enjoy their golden years, McKinney said workforce availability is a plus in the state.
“WalletHub also noted that the working-age population (ages 16-64) is growing faster in Florida than in all but six other states,” he said. “This is a vital asset to companies looking for states with workforce availability.”
In addition, Palm Coast has the advantage of location and amenities to attract business development.
“Our strategic location on I-95 in northeast Florida offers a strategic advantage for all businesses, regardless of the industry,” he said. “Add that to an exceptionally high quality of life with 12 beautiful parks and over 130 miles of connecting trails and one of the longest continuous stretches of (State Road) A1A where drivers can enjoy uninterrupted views of the Atlantic Ocean, both are assets that sets Palm Coast apart.”
The results came as no surprise to Scott Maynard, senior vice president of economic development and public policy at the St. Johns County Chamber of Commerce.
“It always depends on the business, but St. Johns County has a tremendous draw for new residents,” he said. “We boast the No. 1 school district in the state as well as being voted the healthiest county in the state. St. Johns has a highly educated population and very low unemployment.”
Maynard said the availability of incentives to attract new business development can be an important part of success for entrepreneurs and the community as a whole.
“Every opportunity must be vetted and evaluated, but if the return on investment is there it is a good investment,” he said. “The other driving issue is we are in constant competition with other states to attract new businesses, and many of those are offering large incentives. We need to focus on our target markets and be aggressive in recruiting quality opportunities for our residents.”
Maynard said starting a business is only the beginning, and the St. Johns Chamber offers several programs and services to help startups as well as existing businesses succeed.
“Not only do we want new businesses to start, but we really want them to succeed,” he said. “The Chamber has a program called Pitch Factory that offers a seven-week program on starting a new business. We also work with the Small Business Development Center at the University of North Florida, which is a tremendous resource for entrepreneurs.”
In Volusia County, Daytona Regional Chamber of Commerce President and CEO Nancy Keefer said quality of life combined with a business-friendly environment makes the area attractive for entrepreneurs looking to start a new business.
“The Daytona Beach region offers coastal living at an affordable price,” she said. “For businesses, this means that the quality of life is attractive to recruit workers and provide a great work, live and play environment.
Favorable tax policies also are a boon for startups and make Florida affordable for business growth, according to Keefer.
“A state with no income tax is attractive to companies and Florida is considered a tax-friendly state,” she said. “Sales tax is generated from a strong hospitality and tourism presence thereby spreading the revenue across a larger demographic that helps fund services, parks and amenities to name a few, keeping residential taxes fairly low in comparison to most other areas.”
Keefer said organizations and governments in Volusia County offer a range of programs and services to help businesses succeed, which only adds to the state’s appeal as a place to do business.
“With our universities and specifically, the number of incubators and support agencies working collaboratively to provide support to entrepreneurs and new startups, it’s very attractive to locate in the Daytona Beach, Volusia County area,” she said. “Volusia County Economic Development also leads a community stakeholder collaboration hub, Volusia Business Resources, to assist with businesses at any stage of their business. Their resource directory combines access to all partners in economic and business development making it easy to connect.
Keefer said the Chamber also offers services tailored to the needs of all types of businesses.
“Networking is still one of the most often used benefits of a chamber of commerce,” she said. “Entrepreneurs need a space to collaborate, and access to professionals who can guide them to success. We like to provide unique and customized approaches for entrepreneurs as each business is different and often in different stages of their business journey. Our new office space has also been attractive to startup businesses as well as established businesses with ample collaboration and gathering space for small- and medium-sized meetings.”
