Georgia Ranked 9th Best State for Entrepreneurs in 2025

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Atlanta is a leading city in Georgia's startup ecosystem, nurturing innovative entrepreneurs.

News Summary

Georgia has been recognized as the 9th best state in the U.S. for entrepreneurs in 2025, as per a study by Swoop Funding. With a solid startup score of 51.27 out of 100, the state is fostering a thriving environment for small businesses. Factors contributing to this ranking include substantial venture capital investments, a favorable cost of living, and numerous coworking spaces. Cities like Atlanta and Savannah are leading the charge, making Georgia an appealing choice for budding entrepreneurs looking to build their businesses.

Georgia Shines as a Startup Hub!

Georgia, known for its charming cities and vibrant culture, has recently grabbed the spotlight as the 9th best state in the U.S. for entrepreneurs in 2025, according to a study by Swoop Funding. This exciting news underscores what many have already felt: Georgia is a fantastic place for those looking to dive into the world of small businesses.

What Does This Ranking Mean?

Every year, around 670,000 small businesses launch across the country. Yet, the reality is a bit harsh with 21% of these businesses failing in their first year and only a mere 25% making it past the 15-year mark. Georgia, with its friendly business landscape, is turning the tables. The state’s total startup score is a solid 51.27 out of 100, showing it has the ingredients to help entrepreneurs thrive.

Data Points that Matter

The study analyzed 11 key factors, including crucial points like venture capital investments, sales tax rates, and health insurance costs, to arrive at this score. What’s particularly impressive is that Georgia has pulled in a whopping $1.6 billion in venture capital investments, boosting its entrepreneurial ecosystem.

There are also plenty of practical supports for budding businesses. With about 215 coworking spaces dotting the state, entrepreneurs have a reliable place to brainstorm and collaborate. Georgia is home to around 11 million people and enjoys a relatively low unemployment rate of 3.6%, making it an attractive prospect for anyone eager to start their journey.

Cost of Living and Taxes

Georgia’s cost of living index sits at a reasonable 90.8, offering a well-rounded balance for living and working. The sales tax rate is at 7.38%, and there’s an income tax-free allowance of $12,000. This means entrepreneurs can keep more of their hard-earned cash, which is always a good thing! That said, health insurance costs for business owners average around $6,121 per year, an essential detail to keep in mind.

Additionally, if you’re looking for office space, rent will set you back roughly $26.94 per square foot per year, but that’s a small price for a chance to build your empire. The business survival rate in Georgia stands at 49.2%, with about 19,233 active entrepreneurs buzzing around the state, each with their unique visions and dreams.

Cities Leading the Charge

Shining cities like Atlanta, Savannah, and Athens are part of Georgia’s charm, offering supportive environments for startups. Atlanta, in particular, comes in at a fantastic 6th nationally for startup support. It boasts the Advanced Technology Development Center and various initiatives making it easier for innovators to flourish.

Savannah holds the 17th position, and Athens, often known for its vibrant college town atmosphere, is ranked at 40th. Each city contributes its own flavor and resources to support budding entrepreneurs.

Comparing the Competition

While Georgia is making strides, it faces tough competition. Texas reigns supreme with a fantastic startup support score of 55.31, followed by Ohio and North Carolina in second and third place, respectively. The cities of Dallas, Austin, and Houston are particularly noted for being the most supportive places for startups.

Final Thoughts

All in all, Georgia is proving to be a fantastic launchpad for entrepreneurs looking to turn their dreams into reality. With ample support through coworking spaces, favorable tax conditions, and a thriving community of business owners, it’s clear that Georgia is gearing up to be the go-to destination for innovation and growth in the coming years. So, if you’re cooking up a business idea, Georgia might just be the perfect place to get cooking!