With nearly 20% of new businesses failing within their first year, selecting the right location to launch a venture is crucial. In light of this, WalletHub has released its 2025 Best & Worst States to Start a Business report, analyzing the 50 states across 25 key indicators of startup success. These factors include financing accessibility, labor costs, and office-space affordability, offering entrepreneurs valuable insights into where their businesses are most likely to thrive.
While Florida secured the top spot as the best state for startups, South Carolina earned an impressive 13th place, solidifying its position as one of the nation’s most attractive destinations for entrepreneurs. The Palmetto State’s favorable business environment, moderate costs, and skilled workforce make it an appealing choice for startups seeking growth and sustainability.
Why South Carolina Ranks High
- Business-Friendly Climate: South Carolina offers low corporate taxes, minimal regulatory burdens, and incentives for businesses relocating or expanding within the state. These factors make it easier for new companies to establish themselves without excessive financial or administrative challenges.
- Strategic Location: Its proximity to major markets along the East Coast and a growing port network in Charleston provide significant advantages for businesses involved in manufacturing, logistics, or international trade.
- Workforce Development: South Carolina’s investment in technical colleges and workforce training ensures businesses have access to skilled labor tailored to their needs.
- Affordability: The state benefits from low labor and operational costs compared to other regions, helping startups manage expenses effectively.
Industry Opportunities in South Carolina
South Carolina’s economic landscape supports a range of industries, including advanced manufacturing, aerospace, automotive, technology, and tourism. Notably, cities like Charleston, Greenville, and Columbia have cultivated innovation hubs, offering co-working spaces, networking opportunities, and access to venture capital for budding entrepreneurs.
National Comparison
South Carolina’s 13th-place ranking places it ahead of many states and underscores its potential for fostering small business growth. While it didn’t break into the top 10 like neighboring Georgia (#2), the Palmetto State continues to outperform other regions thanks to its balanced approach to business development. North Carolina was ranked 15th. At the bottom of the rankings, states like Rhode Island (#50), Connecticut (#49), and New Jersey (#48) struggle due to higher costs and regulatory challenges.
Supporting Startups Locally
To further improve its standing, South Carolina continues to expand initiatives like SC Launch, a program by the South Carolina Research Authority (SCRA) that provides funding and mentorship to startups. These efforts aim to make the state even more attractive for aspiring entrepreneurs.
As economic challenges like inflation persist, choosing the right state for a business launch is more critical than ever. With its balanced mix of affordability, infrastructure, and workforce readiness, South Carolina proves to be a compelling choice for entrepreneurs looking to turn their ideas into reality.
For the full WalletHub report, visit WalletHub’s 2025 Best & Worst States to Start a Business.
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