Thinking of Starting a Business? Here Are the 10 Best States for Startups, According to a New Report. The ranking takes into consideration factors like the number of startups per 100,000 people and 10-year survival rates.

Americans have filed more than 21 million new business applications in the past four years, per the latest U.S. Small Business Administration data. Entrepreneurs filed an average of more than 440,000 new applications every month.

But figuring out where to start new businesses can be daunting, as there are certian areas of the country that offer better entrepreneurship opportunities than others. Using data collected in January from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau, business travel experts at Booking.com for Business examined which states were best suited for startups.

Related: Small Businesses Are Struggling in This Densely Populated U.S. State — and Thriving in These Others

When it comes to cities with the highest number of startups, San Francisco topped the list, with companies like OpenAI and Grammarly calling the city home. New York City, Mountain View, Boston, Redwood City, and Palo Alto were also among the top cities for startups.

However, even though California cities appear often on the top cities list, California was only ranked the tenth best state for startups. The state has a high number of startups, with 179,415, but the 10-year survival rate of these companies is 35%, which led to its lower ranking.

The researchers created a startup opportunity score out of 10 for each state, taking into account the total number of startups in the state, the number of startups per 100,000 people, and the 10-year survival rate of startups.

Montana, which was ranked the No. 1 state for startups, has a startup opportunity score of 9.55, the highest on the list, and a 10-year survival rate of 41%. Montana has a high number of startups compared to people in the state, or 422 startups per 100,000 people.

Vermont, which is ninth on the list, also has more than 400 startups per 100,000 people.

Here are the best states for startups, according to Booking.com.

1. Montana

^{Bozeman, Montana. Credit: Getty Images}

Total number of startups: 4,800

Startups per 100,000 people: 422

10-year survival rate: 41%

Startup opportunity score: 9.55

2. Oregon

Total number of startups: 15,149

Startups per 100,000 people: 355

10-year survival rate: 36.4%

Startup opportunity score: 8.00

3. Nevada

Total number of startups: 12,034

Startups per 100,000 people: 368

10-year survival rate: 33.5%

Startup opportunity score: 7.20

4. Utah

^{Salt Lake City, Utah. Credit: Getty Images}

Total number of startups: 13,384

Startups per 100,000 people: 382

10-year survival rate: 35%

Startup opportunity score: 7.15

5. Florida

Total number of startups: 86,692

Startups per 100,000 people: 371

10-year survival rate: 34.7%

Startup opportunity score: 7.10

6. Wyoming

Total number of startups: 2,782

Startups per 100,000 people: 473

10-year survival rate: 34.5%

Startup opportunity score: 7.10

7. Idaho

^{Boise, Idaho. Credit: Getty Images}

Total number of startups: 8,548

Startups per 100,000 people: 427

10-year survival rate: 33.1%

Startup opportunity score: 7.05

8. Delaware

Total number of startups: 3,565

Startups per 100,000 people: 339

10-year survival rate: 32.8%

Startup opportunity score: 7.00

9. Vermont

Total number of startups: 2,843

Startups per 100,000 people: 438

10-year survival rate: 37%

Startup opportunity score: 6.85

10. California

^{San Francisco, California. Credit: Getty Images}

Total number of startups: 179,415

Startups per 100,000 people: 455

10-year survival rate: 35%

Startup opportunity score: 6.25

For the full study, click here.