New study shows Minnesota drops in rankings for “Best State for Entrepreneurs in 2025”

(ABC 6 News) – A new study from Simplify LLC shows that Minnesota ranks 49 in best states for entrepreneurs in 2025, a drop of 20 ranks from last year.

The annual study from Simplify LLC uses data from the Census Bureau, Bureau of Economic Analysis, Tax Foundation, and the U.S. Senate. They use six categories to determine the best and worst states for entrepreneurs; those categories include job creation, consumer spending, inflation, business growth, corporate taxes, and educated worker migration.

According to that study, a sharp drop in consumer spending contributed to Minnesota’s drop in rankings. New business growth plunged by 33.5 points, and the state had the highest maximum corporate income tax rate at 9.8%.

Iowa took the ranking of number 50, also having a higher maximum corporate income tax rate, and stagnant consumer spending growth.