Wyoming Ranks 3rd in the Nation for Young Business Owners, with 34.4% Under 40

Across the US, an increasing number of young adults are taking the leap into business ownership, Wyoming News Now reports.

Traditionally, older generations were more likely to start businesses due to greater access to experience, financial resources, and professional networks. However, in recent years, a surge in entrepreneurship among younger workers has begun to shift that narrative.

Economic changes, new digital opportunities, and shifts in career priorities have driven a spike in business applications, especially among those under 40. Today, nearly 30% of business owners in the US fall within this age group, according to a recent analysis of US Census Bureau data by Simply Business. This growth represents a reversal from a decade-long decline in young business ownership seen after the Great Recession.

Wyoming is at the forefront of this trend. The state ranks third in the US for the percentage of business owners under 40, with 34.4% of all business owners belonging to this age group. This places Wyoming just behind Utah (37.3%) and North Dakota (35.1%).

Several factors contribute to Wyoming’s strong showing in young business ownership. The state has a relatively low cost of living, and its outdoor lifestyle appeals to younger generations seeking a better work-life balance. Additionally, Wyoming’s small population and supportive business climate make it a welcoming environment for aspiring entrepreneurs.

A deeper look into Wyoming’s workforce reveals that 46.9% of the state’s workers are under 40, yet this group represents a significant share of the state’s entrepreneurs. Approximately 9.8% of workers under 40 in Wyoming own a business—well above the national rate of 6.4%. In total, there are 14,383 business owners under 40 in the state, accounting for over a third of Wyoming’s 41,846 business owners.

The rise in business ownership among young adults is part of a larger shift in the workforce. Younger workers are drawn to the flexibility and autonomy that self-employment offers, as well as the chance to pursue their passions. Many are capitalizing on opportunities in the digital economy, where start-up costs are relatively low. Fields like software development, digital publishing, and creative services have become especially popular among this demographic.

Unlike traditional sectors that require significant start-up capital, such as finance, health care, and wholesale trade, digital and creative industries offer accessible entry points. For instance, nearly 45.3% of business owners in the information sector are now under 40. The arts, entertainment, and recreation sectors also have seen an increase, with 38.5% of business owners under 40—up from 33.4% just a few years ago.

Another factor driving younger business ownership is the ability to leverage modern technology. Digital platforms and e-commerce tools make it easier for entrepreneurs to launch and manage businesses, often with minimal investment. This shift has lowered traditional barriers to entry, allowing younger adults to turn side hustles into full-time ventures.

Wyoming’s numbers are particularly impressive when compared to national averages. Nationwide, 29.3% of business owners are under 40—lower than Wyoming’s 34.4%. Additionally, 6.4% of young workers in the US own businesses, whereas in Wyoming, that figure stands at 9.8%. This highlights Wyoming as a promising destination for younger workers looking to forge their own paths.

Here’s how Wyoming’s figures compare to the US as a whole:

• Share of all business owners under 40: 34.4% (Wyoming) vs. 29.3% (US)
• Share of workers under 40 who own businesses: 9.8% (Wyoming) vs. 6.4% (US)
• Total business owners under 40: 14,383 (Wyoming) vs. 5.3 million (US)

Wyoming’s workforce composition may be one reason for its above-average numbers. The state’s labor force skews younger, with nearly 47% of all workers under 40, slightly higher than the national rate of 46.3%. This larger pool of potential entrepreneurs could be why Wyoming punches above its weight in terms of youth-driven business creation.

Wyoming is not the only state in the Mountain West seeing an uptick in young business owners. Neighboring Utah ranks first in the nation, with 37.3% of its business owners under 40. Other nearby states, including North Dakota (35.1%) and Oklahoma (33.6%), are also experiencing growth. These states share several key traits: affordable housing, lower costs of living, and smaller populations—all of which create conditions for entrepreneurs to thrive.

On the flip side, business ownership rates for young adults are lowest in the Northeast, where high living costs and a more traditional job market can make entrepreneurship seem riskier. New England states like Vermont, New Hampshire, and Maine have the smallest shares of business owners under 40.

As the US economy continues to evolve, Wyoming’s young business owners are well-positioned to capitalize on the trend. The growing interest in entrepreneurship among younger generations may continue to rise as digital platforms and remote work provide opportunities for people to start companies from anywhere.

Wyoming’s economic landscape, combined with its youthful workforce and affordable cost of living, makes it an attractive place for young people looking to launch a business. As the third-ranking state for young business ownership, Wyoming’s future may be shaped by the creative energy and ambition of its next generation of entrepreneurs.