California's entrepreneurial spirit continues to thrive as new data reveals the state recorded nearly one business creation per minute throughout 2024. According to a recent report by Switch On Business, the Golden State processed an impressive 43,265 new business applications monthly, translating to 59 new ventures every hour.
Despite maintaining its position as a powerhouse for startups, California's 519,182 new business applications in 2024 represented a 6.9% decrease from the previous year. Florida claimed the top spot with 634,321 applications, averaging 72 new businesses per hour.
The report highlights California's dominant position in the business landscape, boasting the largest number of small businesses nationwide and employing seven million people. The state's startup ecosystem continues to attract substantial investment, securing 59.25% of all venture capital raised across the United States in the first quarter of 2024.
California's business growth reflects a broader national trend. The past four years witnessed an unprecedented surge in entrepreneurship across the United States, with 21 million new businesses launched. In 2023, approximately 1.8 million of the 5.5 million new ventures planned to create jobs.
While California's raw numbers are impressive, Wyoming led the nation in per capita business creation, with 10,133 applications per 100,000 residents. In comparison, California recorded 1,317 applications per 100,000 residents, though many of Wyoming's applications came from out-of-state entrepreneurs attracted by favorable business conditions.
The top five states for new business applications in 2024 were:
- Florida: 634,321
- California: 519,182
- Texas: 490,063
- New York: 292,292
- Georgia: 243,088