VIRGINIA - A new study has found that Virginia is one of the best states in the nation for new businesses to survive, ranking 6th overall in five-year startup survival rates.
What we know:
The report, conducted by software company Tekpon using U.S. Bureau of Labor Statistics data, analyzed businesses launched in 2018 and tracked how many were still operating in 2023. It found that 56.52% of new Virginia businesses survived at least five years — significantly above the national average of 51.65%.
In 2018, 16,758 new businesses were formed in Virginia, and 9,472 remained active by 2023. Employment in those businesses grew from 77,169 to 79,405 during the same period, underscoring Virginia’s potential for entrepreneurial growth.
Montana took the top spot nationwide with a 57.63% survival rate, followed closely by Minnesota (57.61%) and Alaska (57.32%). Missouri, meanwhile, ranked last at 44.55%.
What they're saying:
A Tekpon spokesperson said the data illustrates the challenges new business owners face but also highlights how some states create environments where entrepreneurs can thrive.
"It is estimated that approximately 45% of new businesses fail within the first five years," the spokesperson said. "Making a success of a business is a major win for not just the business, but the community and customers that it serves."