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A new study has ranked New Jersey as the No. 23 best state for entrepreneurs in 2025, marking a jump of 10 spots compared to last year’s rankings. 

American entrepreneurship is booming, with unprecedented growth and generational shifts driving new opportunities. The Treasury Department reports that 430,000 new businesses opened each month in 2024, a 50% increase since 2019. Innovations like remote work, the gig economy, and AI are fueling this transformation, creating entrepreneurial hot spots across the nation.

Simplify LLC released its annual study on the Best & Worst States for Entrepreneurs in 2025 using the most recent data from the Census Bureau, Bureau of Economic Analysis, Tax Foundation, and the U.S. Senate.  

The rankings were determined by analyzing six key categories in all 50 states and D.C.: corporate tax rate, inflation, consumer spending growth, job creation rate, and net migration of educated workers. 

Key Findings:

• New Jersey: Rank 23, up 10 from 2024: New Jersey’s rise in the rankings is driven by strong job creation (a rate of 16.9, up 6.1 points, ranking No. 12) and slower regional inflation growth compared to much of the U.S. (19%, No. 7). Consumer spending growth remained flat at 2.1%, ranking No. 27. 

• 10 Best States for Entrepreneurs in 2025: Washington, Texas, Maine, Nevada, Oregon, Florida, Rhode Island, Colorado, Vermont, Hawaii

• Leading Sectors for New Business: 

  • Retail: Including e-commerce and brick-and-mortar stores. 

  • Professional, Scientific and Technical Services: Such as legal and accounting. 

  • Construction: residential and non-residential.