When it comes to starting a business, location is everything. Some states roll out the red carpet for entrepreneurs, while others practically shut the door in their faces. In 2025, the divide is starker than ever, with sunny Florida reigning supreme and struggling Rhode Island scraping the bottom of the barrel, according to a recent WalletHub study.
Florida: The Land of Opportunity
It’s no surprise that Florida has claimed the top spot for starting a business this year. With an overall score of 59.66, the Sunshine State shines bright thanks to its business-friendly environment, lack of personal income tax, and booming industries like tourism, tech, and healthcare.
Florida ranks #1 in Business Environment, offering:
- Explosive Growth: From bustling beaches to growing cities like Miami and Orlando, markets are as diverse as its population.
- Ease of Doing Business: Forget about complicated regulations—Florida keeps it simple.
- Skilled Workforce: Whether it’s hospitality, tech, or healthcare, there’s plenty of talent to go around.
But it’s not all smooth sailing—Florida’s Business Costs Rank (28th) reminds entrepreneurs to keep an eye on their budgets.
Rhode Island: Dead Last
And then there’s Rhode Island. With a dismal overall score of 33.51, the Ocean State ranks dead last, making it the worst place to launch a business in 2025.
Here’s why Rhode Island flops:
- A Stale Business Environment (#50): Rhode Island’s small size isn’t just geographical—it’s economic, too. Scaling businesses here face limited market opportunities and sluggish innovation.
- Weak Resources (#40): Good luck finding funding or skilled workers. Entrepreneurs often hit a wall when it comes to accessing the tools they need to succeed.
- Sky-High Costs (#40): Taxes, rent, utilities—you name it, Rhode Island makes it expensive. For cash-strapped startups, these costs can be deal-breakers.
Rhode Island’s (Missed) Potential
Rhode Island isn’t all bad—on paper, at least. Its strategic location near Boston and New York could be a game-changer, offering access to major markets. The state is also seeing pockets of growth in renewable energy and advanced manufacturing. But until policy changes address the sky-high costs and lack of resources, don’t expect a business boom anytime soon.
Other States to Watch
- Georgia (#2): Affordable costs and a booming economy make it a top contender.
- Utah (#3): Silicon Slopes continue to rise, though higher costs (29th) raise eyebrows.
- Mississippi (#14): If you’re looking to cut costs, this is your spot. Mississippi boasts the lowest business costs in the nation.
Bottom Line
Florida is the clear winner for 2025, offering entrepreneurs a golden ticket to success. Meanwhile, Rhode Island’s low ranking should be a wake-up call for policymakers. Until the state tackles its high costs and lack of support for small businesses, it’ll remain a tough sell for startups.
So, whether you’re chasing your dreams or crunching numbers, choose your state wisely—your success might just depend on it.
Like Newport Buzz? We depend on the generosity of readers like you who support us, to help with our mission to keep you informed and entertained with local, independent news and content. We truly appreciate your trust and support!
