Special Report
States Where the Most People Applied to Start a Business in 2021
Published:
Despite the attention given to large publicly traded companies and the payouts they provide to investors, small businesses continue to be one of the largest private employer segments in the nation, accounting for 66% of new jobs created at any given time and 44% of U.S. gross domestic product, according to a 2019 estimate from the U.S. Small Business Administration.
In 2021, the U.S. had 32.5 million small businesses that employed almost half of the private workforce, led by jobs in health care and social assistance, accommodation and food services, and construction. (Check out the large cities where starting a business is worth the risk.)
The full impact of COVID-19 has yet to be assessed, though at least a third of U.S. small businesses closed temporarily or permanently due to the pandemic. Still, despite the recent years’ challenges, budding U.S. entrepreneurs have been eager, even during the pandemic, to open businesses and open shops that replaced those that went under. (Looking at the end, here are 14 big businesses run by the U.S. government.)
To identify the states where the most people applied to start a business, 24/7 Wall St. reviewed Business Formation Statistics from the U.S Census Bureau. States are ranked by the number of applications for new businesses from January 2021 to January 2022 for every 100,000 people. Population data is from the Census’ 2019 American Community Survey.
The nation’s most populous and most economically contributory states tend to have the highest number of new business applications, with Florida, California, and Texas holding the top three spots, respectively. Georgia had the fourth most applications, even though the state is the eighth-largest by population, and New York the fifth most applications.
Adjusted per capita, the picture changes, and the state with the most entrepreneurial spirit is Wyoming, at 6,395 new business applications last year per 100,000 state residents. Delaware and Georgia follow with 4,973 applications per 100,000 and 3,291 per 100,000, respectively. Meanwhile Florida ranks fourth, Texas 14th, and California ranks in the bottom half, at No. 30.
Click here to see the states where the most people applied to start a business in 2021
50. West Virginia
> Applications for new businesses, Jan. 2021-Jan. 2022: 805 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 14,435 (6th fewest)
> Month with the most applications: Apr. 2021 (1,315 new applications)
> Month with the fewest applications: Feb. 2021 (967 new applications)
> Population: 1,792,147 (13th smallest)
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49. Iowa
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,018 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 32,131 (14th fewest)
> Month with the most applications: Jan. 2021 (2,665 new applications)
> Month with the fewest applications: Dec. 2021 (2,130 new applications)
> Population: 3,155,070 (20th smallest)
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48. Nebraska
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,078 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 20,855 (11th fewest)
> Month with the most applications: Apr. 2021 (2,032 new applications)
> Month with the fewest applications: Feb. 2021 (1,397 new applications)
> Population: 1,934,408 (14th smallest)
47. Maine
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,088 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 14,626 (7th fewest)
> Month with the most applications: Oct. 2021 (1,264 new applications)
> Month with the fewest applications: Feb. 2021 (1,026 new applications)
> Population: 1,344,212 (9th smallest)
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46. New Hampshire
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,094 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 14,876 (8th fewest)
> Month with the most applications: Jan. 2021 (1,239 new applications)
> Month with the fewest applications: Jun. 2021 (1,030 new applications)
> Population: 1,359,711 (10th smallest)
45. North Dakota
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,132 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 8,626 (2nd fewest)
> Month with the most applications: Jan. 2021 (782 new applications)
> Month with the fewest applications: Jul. 2021 (601 new applications)
> Population: 762,062 (4th smallest)
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44. Kansas
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,139 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 33,173 (15th fewest)
> Month with the most applications: Apr. 2021 (2,954 new applications)
> Month with the fewest applications: Feb. 2021 (2,343 new applications)
> Population: 2,913,314 (16th smallest)
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43. Kentucky
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,145 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 51,151 (19th fewest)
> Month with the most applications: Apr. 2021 (4,239 new applications)
> Month with the fewest applications: Feb. 2021 (3,715 new applications)
> Population: 4,467,673 (25th smallest)
42. Rhode Island
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,165 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 12,341 (5th fewest)
> Month with the most applications: Jan. 2021 (1,075 new applications)
> Month with the fewest applications: Jul. 2021 (858 new applications)
> Population: 1,059,361 (7th smallest)
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41. Massachusetts
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,190 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 81,991 (22nd most)
> Month with the most applications: Jan. 2021 (6,754 new applications)
> Month with the fewest applications: Dec. 2021 (5,947 new applications)
> Population: 6,892,503 (15th largest)
40. Alaska
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,206 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 8,826 (3rd fewest)
> Month with the most applications: Nov. 2021 (771 new applications)
> Month with the fewest applications: Jul. 2021 (599 new applications)
> Population: 731,545 (3rd smallest)
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39. Wisconsin
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,209 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 70,392 (25th most)
> Month with the most applications: Apr. 2021 (6,118 new applications)
> Month with the fewest applications: Feb. 2021 (4,977 new applications)
> Population: 5,822,434 (20th largest)
38. South Dakota
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,240 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 10,972 (4th fewest)
> Month with the most applications: Jan. 2022 (926 new applications)
> Month with the fewest applications: Feb. 2021 (763 new applications)
> Population: 884,659 (5th smallest)
37. Minnesota
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,242 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 70,033 (25th fewest)
> Month with the most applications: Jan. 2021 (5,983 new applications)
> Month with the fewest applications: Jun. 2021 (4,962 new applications)
> Population: 5,639,632 (22nd largest)
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36. New Mexico
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,274 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 26,721 (12th fewest)
> Month with the most applications: May 2021 (2,245 new applications)
> Month with the fewest applications: Feb. 2021 (1,864 new applications)
> Population: 2,096,829 (15th smallest)
35. Oregon
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,278 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 53,900 (21st fewest)
> Month with the most applications: May 2021 (4,471 new applications)
> Month with the fewest applications: Jun. 2021 (3,869 new applications)
> Population: 4,217,737 (24th smallest)
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34. Vermont
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,304 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 8,138 (the fewest)
> Month with the most applications: Jul. 2021 (789 new applications)
> Month with the fewest applications: Jun. 2021 (520 new applications)
> Population: 623,989 (2nd smallest)
33. Washington
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,321 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 100,567 (19th most)
> Month with the most applications: Nov. 2021 (8,297 new applications)
> Month with the fewest applications: Dec. 2021 (7,326 new applications)
> Population: 7,614,893 (13th largest)
32. Pennsylvania
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,335 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 170,934 (9th most)
> Month with the most applications: Jan. 2021 (15,717 new applications)
> Month with the fewest applications: Dec. 2021 (12,013 new applications)
> Population: 12,801,989 (5th largest)
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31. Indiana
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,393 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 93,786 (20th most)
> Month with the most applications: Apr. 2021 (9,082 new applications)
> Month with the fewest applications: Feb. 2021 (6,550 new applications)
> Population: 6,732,219 (17th largest)
30. California
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,425 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 563,102 (2nd most)
> Month with the most applications: Jan. 2021 (47,441 new applications)
> Month with the fewest applications: Dec. 2021 (41,313 new applications)
> Population: 39,512,223 (the largest)
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29. Ohio
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,428 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 166,938 (10th most)
> Month with the most applications: Apr. 2021 (15,974 new applications)
> Month with the fewest applications: Oct. 2021 (11,439 new applications)
> Population: 11,689,100 (7th largest)
28. Connecticut
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,437 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 51,217 (20th fewest)
> Month with the most applications: Jan. 2021 (4,448 new applications)
> Month with the fewest applications: Jun. 2021 (3,615 new applications)
> Population: 3,565,287 (22nd smallest)
27. Hawaii
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,472 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 20,839 (10th fewest)
> Month with the most applications: Jul. 2021 (1,759 new applications)
> Month with the fewest applications: Feb. 2021 (1,507 new applications)
> Population: 1,415,872 (11th smallest)
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26. Arkansas
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,481 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 44,695 (17th fewest)
> Month with the most applications: Apr. 2021 (4,379 new applications)
> Month with the fewest applications: Jan. 2022 (3,106 new applications)
> Population: 3,017,804 (18th smallest)
25. Missouri
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,488 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 91,326 (21st most)
> Month with the most applications: Apr. 2021 (7,984 new applications)
> Month with the fewest applications: Feb. 2021 (6,282 new applications)
> Population: 6,137,428 (18th largest)
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24. Tennessee
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,488 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 101,631 (18th most)
> Month with the most applications: Apr. 2021 (9,623 new applications)
> Month with the fewest applications: Aug. 2021 (7,176 new applications)
> Population: 6,829,174 (16th largest)
23. Oklahoma
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,576 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 62,351 (22nd fewest)
> Month with the most applications: Jan. 2021 (5,565 new applications)
> Month with the fewest applications: Feb. 2021 (4,407 new applications)
> Population: 3,956,971 (23rd smallest)
22. Michigan
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,627 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 162,478 (11th most)
> Month with the most applications: Jan. 2021 (14,644 new applications)
> Month with the fewest applications: Nov. 2021 (11,438 new applications)
> Population: 9,986,857 (10th largest)
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21. Alabama
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,653 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 81,071 (23rd most)
> Month with the most applications: Apr. 2021 (7,989 new applications)
> Month with the fewest applications: Dec. 2021 (5,491 new applications)
> Population: 4,903,185 (24th largest)
20. Virginia
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,658 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 141,514 (12th most)
> Month with the most applications: Jan. 2021 (12,668 new applications)
> Month with the fewest applications: Oct. 2021 (10,244 new applications)
> Population: 8,535,519 (12th largest)
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19. Illinois
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,686 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 213,601 (6th most)
> Month with the most applications: Apr. 2021 (20,868 new applications)
> Month with the fewest applications: Dec. 2021 (14,251 new applications)
> Population: 12,671,821 (6th largest)
18. Arizona
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,693 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 123,245 (14th most)
> Month with the most applications: Apr. 2021 (10,379 new applications)
> Month with the fewest applications: Aug. 2021 (9,100 new applications)
> Population: 7,278,717 (14th largest)
17. New York
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,730 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 336,510 (5th most)
> Month with the most applications: Apr. 2021 (27,706 new applications)
> Month with the fewest applications: Jun. 2021 (24,415 new applications)
> Population: 19,453,561 (4th largest)
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16. Idaho
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,732 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 30,952 (13th fewest)
> Month with the most applications: Jan. 2021 (2,610 new applications)
> Month with the fewest applications: Jun. 2021 (2,129 new applications)
> Population: 1,787,065 (12th smallest)
15. North Carolina
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,785 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 187,229 (7th most)
> Month with the most applications: Jan. 2021 (15,933 new applications)
> Month with the fewest applications: Aug. 2021 (13,543 new applications)
> Population: 10,488,084 (9th largest)
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14. Texas
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,850 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 536,301 (3rd most)
> Month with the most applications: May 2021 (45,815 new applications)
> Month with the fewest applications: Feb. 2021 (35,668 new applications)
> Population: 28,995,881 (2nd largest)
13. Montana
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,942 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 20,761 (9th fewest)
> Month with the most applications: Jan. 2022 (1,728 new applications)
> Month with the fewest applications: Mar. 2021 (1,502 new applications)
> Population: 1,068,778 (8th smallest)
12. New Jersey
> Applications for new businesses, Jan. 2021-Jan. 2022: 1,998 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 177,506 (8th most)
> Month with the most applications: Jan. 2021 (15,468 new applications)
> Month with the fewest applications: Feb. 2021 (12,829 new applications)
> Population: 8,882,190 (11th largest)
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11. South Carolina
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,016 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 103,781 (17th most)
> Month with the most applications: May 2021 (9,907 new applications)
> Month with the fewest applications: Feb. 2021 (7,237 new applications)
> Population: 5,148,714 (23rd largest)
10. Maryland
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,050 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 123,921 (13th most)
> Month with the most applications: Jan. 2021 (10,482 new applications)
> Month with the fewest applications: Nov. 2021 (8,491 new applications)
> Population: 6,045,680 (19th largest)
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9. Colorado
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,098 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 120,830 (15th most)
> Month with the most applications: Jan. 2021 (9,586 new applications)
> Month with the fewest applications: Mar. 2021 (9,004 new applications)
> Population: 5,758,736 (21st largest)
8. Utah
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,139 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 68,579 (23rd fewest)
> Month with the most applications: Jan. 2022 (5,683 new applications)
> Month with the fewest applications: Aug. 2021 (4,889 new applications)
> Population: 3,205,958 (21st smallest)
7. Louisiana
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,308 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 107,292 (16th most)
> Month with the most applications: May 2021 (11,594 new applications)
> Month with the fewest applications: Sep. 2021 (6,928 new applications)
> Population: 4,648,794 (25th largest)
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6. Mississippi
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,347 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 69,856 (24th fewest)
> Month with the most applications: Apr. 2021 (8,226 new applications)
> Month with the fewest applications: Dec. 2021 (4,252 new applications)
> Population: 2,976,149 (17th smallest)
5. Nevada
> Applications for new businesses, Jan. 2021-Jan. 2022: 2,384 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 73,430 (24th most)
> Month with the most applications: Apr. 2021 (6,638 new applications)
> Month with the fewest applications: Dec. 2021 (5,018 new applications)
> Population: 3,080,156 (19th smallest)
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4. Florida
> Applications for new businesses, Jan. 2021-Jan. 2022: 3,183 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 683,680 (the most)
> Month with the most applications: May 2021 (62,956 new applications)
> Month with the fewest applications: Dec. 2021 (47,191 new applications)
> Population: 21,477,737 (3rd largest)
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3. Georgia
> Applications for new businesses, Jan. 2021-Jan. 2022: 3,291 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 349,426 (4th most)
> Month with the most applications: Apr. 2021 (32,981 new applications)
> Month with the fewest applications: Dec. 2021 (22,354 new applications)
> Population: 10,617,423 (8th largest)
2. Delaware
> Applications for new businesses, Jan. 2021-Jan. 2022: 4,973 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 48,427 (18th fewest)
> Month with the most applications: May 2021 (4,154 new applications)
> Month with the fewest applications: Dec. 2021 (3,230 new applications)
> Population: 973,764 (6th smallest)
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1. Wyoming
> Applications for new businesses, Jan. 2021-Jan. 2022: 6,395 per 100,000 people
> Total applications for a business, Jan. 2021-Jan. 2022: 37,014 (16th fewest)
> Month with the most applications: Nov. 2021 (3,208 new applications)
> Month with the fewest applications: Feb. 2021 (2,486 new applications)
> Population: 578,759 (the smallest)
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