When starting a business, choosing the correct location is essential because around 20% of new ventures fail within the first year. As a result, WalletHub has published its 2025 Best & Worst States to Start a Business study, which examines 25 important startup success metrics across 50 states. These elements, which give business owners important information about where their companies are most likely to succeed, include office space affordability, labor expenses, and funding accessibility.
South Carolina ranked an amazing 13th, securing its place as one of the most desirable states in the US for entrepreneurs, while Florida took the top spot as the greatest state for startups. Startups looking for development and sustainability find the Palmetto State to be an enticing option because to its qualified workforce, affordable expenses, and supportive business environment.
Why South Carolina Ranks High
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Business-Friendly Climate
: South Carolina offers low corporate taxes, minimal regulatory burdens, and incentives for businesses relocating or expanding within the state. These factors make it easier for new companies to establish themselves without excessive financial or administrative challenges. -
Strategic Location
: Its proximity to major markets along the East Coast and a growing port network in Charleston provide significant advantages for businesses involved in manufacturing, logistics, or international trade. -
Workforce Development
: South Carolina s investment in technical colleges and workforce training ensures businesses have access to skilled labor tailored to their needs. -
Affordability
: The state benefits from low labor and operational costs compared to other regions, helping startups manage expenses effectively.
Industry Opportunities in South Carolina
Numerous businesses, including advanced manufacturing, aerospace, automotive, technology, and tourism, are supported by South Carolina’s economic environment. Notably, communities like Columbia, Greenville, and Charleston have developed innovation hubs that provide aspiring business owners with access to venture funding, co-working spaces, and networking opportunities.
National Comparison
South Carolina’s 13th-place position puts it ahead of many other states and highlights how it can support the expansion of small businesses. The Palmetto State continues to perform better than other areas because of its balanced approach to corporate development, even though it didn’t make it into the top 10, unlike its neighbor Georgia (#2). 15th place went to North Carolina. States with greater expenses and more complicated regulations, such as Rhode Island (#50), Connecticut (#49), and New Jersey (#48), suffer toward the bottom of the rankings.
Supporting Startups Locally
South Carolina keeps growing programs like SC Launch, which is run by the South Carolina Research Authority (SCRA) and offers companies cash and coaching, in order to further enhance its reputation. The goal of these initiatives is to further increase the state’s appeal to prospective business owners.
Selecting the ideal state for a business launch is more important than ever as long as economic issues like inflation continue to exist. South Carolina is an appealing option for business owners wishing to realize their ideas because of its well-balanced combination of infrastructure, workforce preparedness, and affordability.
See WalletHub’s 2025 Best & Worst States to Start a Business for the complete analysis.