Top 5 Best Places for Women Entrepreneurs in the USA

The entrepreneurial landscape in the United States is rich with opportunities, and it’s no different for female founders or women entrepreneurs. Women-owned businesses have been on the rise in recent years, and the support and resources available vary from state to state. If you’re a female entrepreneur looking to start or grow your business, it’s important to consider not only your business idea but also the environment in which you’ll operate. Women-owned businesses (WOB) continue to rise in number and impact across the country, despite the pandemic, the labour shortage, and a heavily patriarchal backdrop. And while the feminine entrepreneurial spirit can thrive anywhere, certain states actively encourage and support women-owned businesses more than others.

Let’s explore the top 5 USA states for female founders from Merchant Maverick. This is based on factors such as the total venture capital in the past five years invested in women-led startups, per cent of employer firms led by women, per cent of employees at women-led firms, and more.


For the third consecutive year, Colorado is the greatest state for women-led companies, and it even scored higher overall than the previous year (75.2). Colorado is still the only state to place in the top 10 for each of the five measures related to gender, despite not leading in any of the categories. With $3.3 billion given to female-led startups over the last five years (ranked fourth), 2.5% of Colorado women running their own businesses (ranked second), and high average compensation for female CEOs (ranked fourth), the Centennial state appears to be well-positioned at the top of the pack.


After dropping to number four on our ranking, Washington has now risen back to the top of the list. One factor contributing to the increase is that the Evergreen State, which was previously ranked worst, is now in first place for company survival rate (89.2). In terms of not having a state income tax, Washington is tied with Texas for first place. It also comes in fifth place with $4.4 billion in venture capital investments made in women-led firms, a significant improvement. With women owning 29.5% of enterprises, the state is likewise stable, ranking fifth. Washington has a somewhat high unemployment rate (ranked 31st), yet those factors keep the state near the top of the pack.


This year, California moved up the list considerably, mostly due to the state’s thriving venture capital industry. Indeed, during the last five years, Californians have received $74.9 billion, or 47% of all venture capital awarded to women in the US (1). In addition, California’s female entrepreneurs enjoy substantial earnings (6th) and a comparatively high rate of firm survival after a year (82.6%; 9th). California is still a major player in entrepreneurship even with its possibly harsh taxation (ranked 50th) and high unemployment rate (ranked 36th).


Grand Canyon State climbed five spots this year, mostly as a result of its third-place finish (30%) among women-owned enterprises. Arizona continues to be outstanding in terms of consistency, as evidenced by its ranking in the top 20 for all metrics but unemployment (34th). Arizona ranks 16th in the US for average income ($52,972) and has 20.41% of its workforce headed by women (15th). Notably, Arizona’s venture capital investments were far lower this year than they were in previous years, despite the state ranking 17th during the previous five years for investments made in women-led firms. It might be challenging for Arizona to stay a top contender if that tendency keeps up.


From a respectable third place in 2022, the Lone Star State has dropped to a still-respectable fifth place. Texas had $6.5 billion invested in the last five years, ranking fourth, making it the state with the greatest venture capital landscape for women outside of California and the Northeast. Furthermore, the majority of workers—22.11%—who work for a company in Texas are women (5th). Texas’s lack of income tax (tied for first) will appeal to high incomes, but the state isn’t in the Top 3 due to its high unemployment rate (36th) and relatively low rate of female company ownership (29th)..

These top states offer an excellent environment for women entrepreneurs to start and grow businesses. While geographical location can play a significant role in your entrepreneurial journey, remember that success ultimately depends on your vision, dedication, and the unique value you bring to the market. Whether you’re in the tech industry, retail, healthcare, or any other field, opportunities abound across the United States for women entrepreneurs ready to make their mark. Explore your options, tap into local resources, and let your entrepreneurial spirit flourish in one of these supportive states.

Contact FD Global Connections if you are planning to expand your business into the USA!