Montana Ranks 12th For Starting A Business In America

Montana ranks among the top states in the nation for starting a business, coming in 12th overall in a new WalletHub study comparing all 50 states across key indicators of startup success.

The report evaluated states based on 25 metrics, including business environment, access to resources and business costs. Montana performed particularly well in affordability, ranking sixth in business costs and benefiting from some of the cheapest office space in the country. However, it lagged in access to resources, placing 45th in that category.

Gov. Greg Gianforte said the ranking reflects ongoing efforts to strengthen the state’s economic climate.

“Montana is open for business,” Gianforte said. “Since taking office, we’ve removed burdensome regulations, cut taxes, strengthened our workforce, and increased the supply of affordable housing to support the businesses choosing to invest in Montana and create more good-paying jobs.”

Nationally, Florida, Utah and Texas took the top three spots, followed by Oklahoma and Idaho. Montana’s placement just outside the top 10 puts it ahead of many neighboring states in the Northern Plains and Mountain West.

North Dakota ranked 25th overall, while South Dakota came in at 26th. Wyoming trailed slightly at 28th. Minnesota ranked 37th, placing it well below Montana despite its larger population and economic base.

Analysts say location remains a critical factor in startup success, especially as new businesses navigate economic uncertainty.

“About half of all new businesses don’t survive five years, so the idea of becoming a business owner can be daunting,” said Chip Lupo, a WalletHub analyst. “That’s why it’s crucial to establish your business in a state that will maximize your chances of success. The best states have low corporate tax rates, strong economies, an abundance of reliable workers, easy access to financing and affordable real estate.”

The study notes that more than one-fifth of startups fail within their first year, and nearly half don’t make it to five years, underscoring the importance of a supportive business environment.

While Montana’s relatively small population can limit workforce availability and access to capital, its low costs and growing economy continue to attract entrepreneurs looking for opportunities to launch and expand.

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State leaders say those advantages, combined with ongoing policy changes, position Montana to remain competitive in the years ahead.