A state-by-state analysis from lending company Clarify Capital reveals which states are seeing small businesses thrive.
The data collected examined certain factors that contribute to why some states are performing better than others, including new business applications, access to funding, and small business density, as well as the states that offer the best conditions for entrepreneurs in 2025.
The data showed Florida just set a new national record for entrepreneurship, ranking #1 in the U.S. in small business density, with 13,822 small businesses per 100,000 residents.
Key Findings:
• Florida ranks #1 in small business density, with more small businesses per capita than any other state
• #3 in new business applications per capita, entrepreneurial momentum remains strong
• #3 overall for small business climate in 2025, based on growth, volume, and policy support
• But: Florida is #14 in SBA loan approvals per capita, and entrepreneurs are starting businesses faster than they’re getting funded
• And Florida ranks #23 in average SBA loan size, signaling potential gaps in growth-stage capital
While Florida continues to create an environment where small businesses can thrive, the study showed that tax policies from other states were limiting the growth of small businesses. The other was access to capital.
Florida continues to strengthen its small business economy through legislation aimed at reducing bureaucratic burdens, expanding access to capital, and supporting entrepreneurs. Florida also ranks high thanks to its pro-business climate and rapid rate of small business formation.
