These Are the Best 10 States for Entrepreneurs and Startups, and These 10 Are the Worst

Starting your own company is a great way to be your own boss, call the shots, and enjoy the financial upsides of a lucrative idea. But believe it or not, the place you choose to start a business could impact its chances of success. Business.org studied all 50 states, as well as Washington, D.C., to see how startups are likely to fare, and here are the best states for new businesses based on its analysis.

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Though not a state, Washington, D.C. is ranked as the best place to start a business. One reason is that 25- to -34-year-olds comprise over 71% of its population, and while there's nothing stopping older workers from seeking employment at startups, younger workers tend to have a higher tolerance for the ups and downs that go with it. That said, Washington, D.C. has high housing prices and a generally inflated cost of living, so you'll need to weigh access to young, fresh labor against the expense of being in a thriving city.

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If you don't mind the remote nature of North Dakota, it could be a great place to start a business. In-state unemployment is lower than the national average, housing is fairly cheap, and 25- to 34-year-olds make up over one-third of its population.

Young workers are flocking to Colorado, so much so that 25- to -34-year-olds make up close to 40% of its population. As such, it’s a good place to kick off a business venture. And with a number of thriving cities to choose from, you have options for setting up shop. Just keep in mind that the Denver housing market in particular is exploding, so renting office space for a business could be an expensive prospect there.

Low unemployment and a large percentage of residents aged 25 to 34 (over 36%) make Nebraska another appealing choice for entrepreneurs. With a cost of living that's well below the national average, Nebraska is a great state for affordable housing, which means you'll have more money to sink into your venture.

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Over one-third of Utah's population consists of 25- to 34-year-olds, which makes it a suitable place to start a business. That said, Utah's cost of living is higher than the national average, with housing being a particularly large expense.

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Many large companies set up shop in Delaware due to favorable incorporation laws. And if you're starting a smaller business, you might benefit similarly. One-third of Delaware's population is on the younger side, which makes it a great environment for a new venture, and its cost of living is well below that of its neighboring states.

The fact that one-third of Missouri's population consists of 25- to 34-year-olds is good news for startups. The cost of living in Missouri is relatively low on a whole, and housing is particularly affordable.

Though Washington, D.C. gets the distinction of having the largest percentage of younger residents aged 25 to 34, Massachusetts comes in second in this regard, making it a viable place to open a business. But as is the case for D.C., the living isn't cheap in Massachusetts, so that's a factor to consider as well.

With more than a quarter of its population falling between the ages of 25 and 34, Idaho is another solid choice for starting a business. Unemployment there is relatively low, and future job growth projections exceed those of the U.S. on a whole.

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Like Idaho, more than one-fourth of Oklahoma's population is between ages 25 and 34. Housing in Oklahoma is extremely affordable, and the cost of living is lower than the national average.

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While the aforementioned states may be good places to start a business, here are a few states you may want to avoid.

With unemployment coming in at 5.3% -- well above the national average -- West Virginia's job market is far from thriving. And while it may be a relatively inexpensive place to live, it's probably not the best place to start a business.

Unemployment in Mississippi is higher than the national average, and while it's a cheap place to live, the state's economic outlook isn't great. Future job growth falls below average projections nationwide, and low average wages mean local customers may not have the ability to sustain a new venture.

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Alaska's remote location makes it a tough draw for new businesses. Unemployment is at a whopping 6.6%, the highest of any state, and the cost of living is also higher than the national average.

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The fact that New Mexico's unemployment rate is higher than the national average makes it a less-than-appealing choice for opening a new business. It also has one of the lowest percentages of younger residents aged 25 to 34 in the country.

Louisiana's economy has seen its share of troubles, and its high unemployment rate reflects it. Despite younger residents being drawn to cities like New Orleans, it's a questionable choice for starting a new business.

High unemployment is certainly a good reason not to start a business in Arizona. That said, future job growth projections well exceed those of the U.S. on a whole, which means the state's economy may be in transition, and on its way to taking a turn for the better.

Despite its large percentage of residents aged 25 to 34, Ohio isn't the best place to start a business. Unemployment is high, and recent job growth has been extremely low. Future job growth projections aren't more encouraging.

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Pennsylvania is plagued with high unemployment and a lackluster job market. Recent job growth has been discouraging, and future job growth doesn't look much different.

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Despite a decent future jobs outlook, the unemployment rate in Kentucky is substantially higher than the national average. As such, its economy may not be strong enough to support a new business.

Given that nearly one-third of North Carolina's population falls between the ages of 25 and 34, you'd think it would be a solid choice for starting a business. But on the flipside, unemployment is higher than average, and housing is expensive in major cities where new businesses are more likely to succeed.

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