There is a seemingly never-ending list of things of crucial decisions and considerations when you are a tech entrepreneur—choosing where to open your next business, where to move your current business, or where to live as a business leader is challenging at best.
You must consider factors such as age range and education, local employment, housing expenses, and startup surges, which may get overwhelming. That is why we assembled a list outlining the best states for tech entrepreneurs to begin their next endeavor.
Here are the top ten states for tech entrepreneurs in 2020:
Over the past 20 years, Colorado has gained a tremendous entrepreneurial community with a dynamic group of leaders, groups, and institutions dedicated to nurturing this environment. With Boulder and Colorado Springs, among other innovation-driven cities, Colorado is a noteworthy cybersecurity and tech hub. A high population of adults ages 25-34, a low unemployment rate, and a reasonable real estate market makes Colorado an ideal state for a tech entrepreneur who is just as passionate about the outdoors as a thriving career.
With one of the fastest year-over-year growth by digital entrepreneurs at 57 percent, Iowa is home to a fast-growing, robust tech community. Iowa is a state riddled with a history of hard work, passion, and community, which are principals that make it ideal for an entrepreneur ready to plant their roots. With a low unemployment rate of 2.5 percent, a dense population of educated millennials, and a low rent as a percentage of median income, business leaders can bring their ideas to Iowa and build their business with confidence.
With approximately $11,537,129 of venture capital invested per new company reported in 2019, Utah ranks high on the list of states where tech entrepreneurs should build their empire. From 2013-2018, Utah’s working-age population rose by 9 percent, closing in on 2 million. Venture flows freely in this ‘elevated ‘state, and real estate is hot, making it a highly sought-after location for tech startups.
Florida is not only the land of sunshine, but it is the land of favorable corporate taxes and exciting startup activity. This state has a high rate of new entrepreneurs entering the business arena, with 0.46 percent of its population starting businesses. The high rate may be because companies can get off the ground for reasonably cheap. Approximately 18.8 percent of businesses start with less than $5,000, making it ideal for young, enthusiastic business leaders.
“Everything is bigger in Texas,” They say, including technology. The growing progressive mindset across the state paired with encouraging creativity make Texas the perfect state for a new tech startup. Texas has recently experienced the second-largest growth in state GDP, growing by 5.1 percent in one year. With relatively affordable living and property prices and more than $2.68 billion invested in 2018, tech entrepreneurs are flooding this southern state to establish their livelihood.
According to research, Wyoming’s business tax climate ranks number one out of all 50 states. It does not charge a corporate tax income or an individual tax income. Although the working-age population is on a decline, it has one of the highest rates of new entrepreneurs and for a good reason. Wyoming has a high percentage of early survival, with 81.66 percent of startups still in business after year one.
Since California is home to the world-renowned ‘Silicon Valley,’ it is only natural to make the list. With a highly competitive environment, high corporate tax rates, and unfathomable real estate costs, California may not be the first choice for a new entrepreneur. However, the startup survival rate is better than the national average. Venture capital flows through the state, much like the vast, rolling landscapes, making it attractive for ambitious and established business owners.
Many consider North Dakota to be “on fire.” Not literally, but economically. From the first quarter in 2018 to the first quarter in 2019, its GDP grew by 3.9 percent. North Dakota is known for its energetic workforce, founded in hard work and passion. This passion is evident by its 10-year growth rate of establishments of 1.44 percent. Opportunities are endless for new entrepreneurs. With high rates of startup activity and a population of 25-to-35-year-olds of almost 35 percent, North Dakota truly lives up to its state slogan, “Be Legendary.”
South Dakota may have a smaller population than most. Still, its labor force participation is high, which means people are working age or available to work and are eager for entrepreneurs to bring their ideas to life in their locale. The business tax climate is superb, the opportunity for significant venture capital is ripe, and the housing is affordable, making it an ideal place to launch your business.
Over the past few years, Idaho’s working-age population has grown by 7.2 percent, making it an attractive prospect for startups. It has one of the highest rates of new entrepreneurs. This increased rate is most likely because it is relatively cheap to launch a business. Tech entrepreneurs are guaranteed to find a tight-knit community of thinkers and innovators ready to work since 0.38 percent of the state population is starting their own business.