Massachusetts is no longer among the top states for women-led startups.
The Bay State was ranked the seventh most female entrepreneur-friendly state in the country, according to a report by Merchant Maverick. This year, Massachusetts dropped down to 14th in the group's ranking.
Colorado was the best state for women-led startups for the third year in a row, and opportunities — and startup funding — for female business owners appear to be moving West, according to this year's report by Merchant Maverick.
Merchant Maverick, a partner referral site that writes editorial reviews of merchant-related software, found that Colorado — despite an overall high unemployment rate — continues to rank well in all other metrics, with strong participation by women in leadership roles and resilient startup hubs in Boulder and Denver.
The report, Best States for Women-led Startups, found that Wyoming and Illinois are this year’s most improved states among the Top 10. Women in Wyoming are starting businesses and overseeing a high percentage of state’s employees, while Chicago’s high levels of venture capital propelled Illinois into the Top 10 this year for the first time.
While many of last year’s Top 10 made the list this year, including Colorado, Texas, Florida, Washington, California, Virginia and Arizona, they were joined by North Carolina, Wyoming and Illinois.
Notably absent were Northeastern states. While New York, Vermont and Massachusetts fared relatively well, they missed the Top 10, landing at No. 12, 14 and 14, respectively. Massachusetts and Maryland were the only two states to fall out of the Top 10.
“While venture capital remains strong in the region, it appears to be facing some headwinds when it comes to unemployment and startup survival rates,” the report states. “While reports of the region’s demise may be greatly exaggerated, there could be trouble ahead for the Northeast when it comes to retaining its footing in the post-Covid world.”
This is not the first report to place Colorado at the top. An analysis released last summer by NorthOne, which was based on data from the U.S. Census Bureau and a Kaufmann Indicators of Entrepreneurship report, found that Colorado had the highest percentage of women-owned businesses in the country at 10.39 percent.
While venture capital funding to female co-founded or founded startups fell 15 percent in 2022, it was still the second-highest allotment of venture capital funds to female startups on record, with $36.3 billion through October.
According to the Merchant Maverick report, here are the best and worst states for women entrepreneurs:
Top 10 states for women-led startups:
- Colorado
- Washington
- California
- Arizona
- Texas
- Virginia
- Wyoming
- Florida
- North Carolina
- Illinois
Bottom 10 states for women-led startups:
41. Nebraska
42. Michigan
43. South Carolina
44. North Dakota
45. Arkansas
46. Oklahoma
47. West Virginia
48. Tennessee
49. Alabama
50. Mississippi
