Utah has been ranked the third-best state to start a business in WalletHub’s 2025 report, thanks to its supportive business environment, access to financing, and a strong economy. Idaho also performed well, securing the fifth spot in the rankings. The report evaluated all 50 states across 25 indicators of startup success, such as financing access, workforce availability, and office space affordability.
Utah’s high ranking is largely due to its favorable financing environment, being the second-easiest state for securing business loans. The state also boasts the third-largest year-over-year employment growth in the nation, at 2%, signaling a thriving job market and business success. Additionally, entrepreneurs in Utah benefit from lower employee costs, as the average health insurance premium per enrolled employee is the third-lowest in the U.S.
The state’s technology-friendly environment was also highlighted, with Utah being recognized by the Center for Digital Government’s “Digital States Survey” as a leader in using technology to enhance business efficiency. This, combined with a tech-savvy workforce, offers a competitive advantage to businesses looking to leverage digital tools and innovation.
Idaho and Utah ranked 1st and 2nd respectively in average growth in number of small businesses.
Idaho, ranked fifth overall, continues to show strong growth and appeal for entrepreneurs. The state has demonstrated steady improvements in areas essential for startup success, making it an attractive option for business development in the Mountain West region.
The full report can be found at WalletHub.com.