Nevada's renewable energy industry has become a magnet for innovative new startups in the state.
2012 startup rate: 390 per 100,000 adults
Entrepreneurs in everything from retail to tech, aerospace, energy and defense are betting on Nevada as a place to launch.
Some are inspired by the presence of big-name companies like Apple, Microsoft, Zappos and Boeing, said Steve Hill, executive director of the Nevada Governor's Office of Economic Development.
For others, it's the business-friendly environment. There's no personal income, business income or franchise tax, the state has streamlined its business licensing and permits process, and commercial real estate is relatively affordable, said Hill.Nevada also recently set up a $10 million Catalyst Fund in 2011 to help startups get capital for relocation and expansion.
The housing bust is still taking a toll here, though, with many would-be entrepreneurs lacking equity in their homes that they could tap to finance a startup.
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Source: 2013 Kauffman Index of Entrepreneurial Activity, published by the Kauffman Foundation. The 2012 startup rate for each state is based on a yearly national survey of about half a million people -- adults aged 20 to 64 who start a business each month with 15 or more hours worked. In Montana, for example, Kauffman found that 530 of every 100,000 adults started businesses in 2012.
By Parija Kavilanz @CNNMoney - Last updated June 20 2013 11:48 AM ET