By Granite State Report
New Hampshire is a small state with an outsized entrepreneurial past. Textile mills once powered the Merrimack, and in the last two decades the same brick mill buildings in Manchester’s Millyard have birthed cloud infrastructure companies, regenerative-medicine labs, and medical-device innovators. Today, a new cohort of founders—bootstrappers, university spinouts, and mission-driven small businesses—are piecing together capital, talent, and customers across the Granite State.
This article takes a data-driven look at New Hampshire’s startup and small-business landscape in 2025: the tax and policy setting; where capital comes from; the anchor institutions and programs that matter; what the metrics say about business formation and jobs; and where the ecosystem still needs work. Throughout, I link to primary sources so founders and policymakers can act on the details.
1) The Climate: Taxes, Costs, and the “Why New Hampshire?” Pitch
No broad-based sales tax, no wage income tax—and as of 2025, no interest & dividends tax. New Hampshire doesn’t levy a general sales tax, a point the Department of Revenue Administration (DRA) states plainly. (revenue.nh.gov) The state also repealed its Interest & Dividends (I&D) tax for tax periods beginning January 1, 2025, per the DRA’s technical release. (revenue.nh.gov)
But mind the business taxes and local excises. New Hampshire’s two primary business taxes are the Business Profits Tax (BPT) and Business Enterprise Tax (BET). For taxable periods ending on or after Dec. 31, 2023, the BPT rate dropped to 7.5%, and the BET is 0.55%—rates confirmed by DRA’s FAQs. (The BPT had been 7.6% the prior year.) (revenue.nh.gov) Legislators continue to debate further adjustments (e.g., HB155 proposes a future BET cut to 0.50%), signaling that rates remain a live policy lever. (LegiScan)
There’s still no state sales tax, but founders should plan for Meals & Rentals and Communications Services excises that function like targeted sales taxes—relevant if you run hospitality, events, or telecom-adjacent businesses. (GSA SmartPay)
Net: For many startups—especially professional services, software, medtech, and B2B—New Hampshire’s tax profile is founder-friendly, with simple headline messages (no sales tax; no wage income tax; I&D repealed) complemented by competitive, gradually falling business tax rates. Policymakers and economic-development teams can make this a tighter sales pitch to attract founders moving from higher-tax states (especially those selling in e-commerce, SaaS, and services).
2) The Numbers: Business Formation, Jobs, and “Small Business” Reality
Small businesses are the backbone of NH job creation. The Small Business Administration’s 2024 State Profile for New Hampshire shows a net increase of 1,731 establishments, with opening and expanding firms adding 67,873 jobs versus 54,534 lost at closing and contracting ones—a net 13,339 jobs, of which 78.5% were attributable to small businesses. (Office of Advocacy)
Entrepreneurship trendlines: Nationally, early-stage entrepreneurship metrics stabilized after pandemic highs—the 2023 monthly rate of new entrepreneurs was ~0.35%, according to economist Robert Fairlie’s 2023 indicator series, consistent with a drift back toward pre-pandemic norms. While these are national indicators, they set context for state movements and show entrepreneurship reverting from the 2020–2021 spike. (Robert Fairlie) Kauffman’s state-level dashboards are a useful way to benchmark New Hampshire against peers over time. (Kauffman Indicators of Entrepreneurship)
Labor market: New Hampshire’s labor force participation rate hovered around 65–66% through mid-2025, per FRED’s LBSNSA33 series, with NH Economic & Labor Market Information (ELMI) reporting a 771,600 labor force in 2024 (up 1.3% YoY). Tight labor markets remain both a bragging right and a constraint for founders. (FRED)
SBDC impact: The NH Small Business Development Center (SBDC) reports that in 2024, SBDC-advised companies accessed $15.8M in new capital, supported ~6,500 jobs, and generated a $254.6M total annual economic impact—useful proof that founder services translate into measurable outcomes. (nhsbdc.org)
3) The Institutions That Matter (and How Founders Can Plug In)
New Hampshire Tech Alliance (NHTA). The Alliance is the statewide convener for tech startups, running signature programs like the Product of the Year (POY) awards, TechWomen/TechGirls, and a fall Innovation Summit that includes a startup showcase. Recent highlights: Pirouette Medical (Portsmouth) won 2024 Product of the Year for its naloxone auto-injector; 2024 POY finalists included SportsVisio, Sequel Medical Technologies, Atmospheric G2, and Driver Technologies. (New Hampshire Tech Alliance)
NHTA also absorbed AlphaLoft and Live Free & Start into its programming, combining accelerator know-how with policy and community. (manchester.inklink.news) Founders should watch the Alliance’s calendar for pitch and networking windows. (New Hampshire Tech Alliance, Inc)
University of New Hampshire (UNH) Entrepreneurship Center (ECenter). The ECenter delivers hands-on programs, competitions, and donor-funded micro-grants that span ideation to company creation—open to any major. It even offers the ECenter Challenge with $25,000 in prizes geared to get students experimenting with ideas. (UNH)
Dartmouth’s Magnuson Center for Entrepreneurship. Dartmouth’s hub fuels student and alumni founders with programming, mentorship, and global competitions; in 2024, three Magnuson-connected startups advanced in the Hult Prize global challenge. (Magnuson)
NH Small Business Development Center (SBDC). Free, one-on-one advising statewide on capital, strategy, cybersecurity, and more. The SBDC’s 2024 impact numbers (above) underscore its value for both Main Street and tech founders. (nhsbdc.org)
Advanced Regenerative Manufacturing Institute (ARMI) | BioFabUSA and DEKA Research (Dean Kamen).** In Manchester’s Millyard—now branded “ReGen Valley” in ARMI materials—DEKA and ARMI anchor a med-device/biomanufacturing cluster that gives NH a rare deep-tech edge outside a major metro. ARMI’s national Manufacturing USA role plus Kamen’s engineering machine at DEKA create density for hardware, robotics, and bio-innovation. (ARMI)
New Hampshire Business Finance Authority (BFA). The state’s credit-enhancement and direct-lending arm administers SSBCI capital programs and partners with local lenders to expand access to credit. If your bank says “maybe,” talk to your lender about whether a BFA guarantee or participation makes the deal work. (NH Business Finance Authority)
Community Development Finance Authority (CDFA). CDFA’s Tax Credit Program lets businesses redirect NH business-tax obligations to vetted community economic-development projects—useful for founders who want to build goodwill and for nonprofit innovation infrastructure (incubators, co-working, workforce) seeking capital. Credits equal 75% of the donation and can apply against BPT, BET, and Insurance Premium Tax. (nhcdfa.org)
4) Capital: Where the Money Comes From (and How to Stack It)
SSBCI 2.0 (via NH BFA). New Hampshire’s allocation under Treasury’s State Small Business Credit Initiative supports three loan participation programs administered by the BFA, catalyzing private lending for small businesses and earlier-stage companies that need working capital or equipment financing. Founders should ask their banker whether their loan can be structured with BFA participation to improve terms. (U.S. Department of the Treasury)
SSBCI Technical Assistance (TA). In parallel, the state deployed SSBCI TA dollars through partners like NH SBDC to help underserved founders with loan readiness, financials, and compliance—funding approved at Governor & Council in early 2024. (New Hampshire Secretary of State Media)
Angel and micro-VC. New Hampshire’s best-known organized early-stage capital vehicle is the Millworks Fund (Series II), a public-private partnership that includes the BFA and about 40 individual investors. Millworks has committed $600,000 per year to NH startups and historically partnered with NHTA’s TechOut and accelerator programs to create a steady seed pipeline. BFA’s own page underscores the partnership and intent to invest annually in scale-ready NH companies. (Millworks Fund)
Alumni Ventures (AV), headquartered in Manchester, is one of the country’s most active venture platforms; while AV funds invest globally and aren’t NH-exclusive, having a national VC brand headquartered in-state brings mentor and investor spillovers. (PitchBook)
Other active groups with NH ties include 10X Venture Partners (Manchester) and New North Ventures (Manchester), with theses spanning software, cyber/national security, and industrial tech. (PitchBook)
Reality check: national VC cycles still matter. After a difficult 2023, U.S. VC deal value rebounded ~30% in 2024, driven disproportionately by AI. But capital remains concentrated in a smaller set of large funds; exits are still below peak levels, and fundraising by VCs hit a five-year low, per NVCA/PitchBook and major financial outlets. Translation for NH founders: the bar is high, and compelling revenue or differentiated tech (especially AI, life sciences, and defense tech) improves your odds. (NVCA)
Tactical capital stack for NH founders (2025):
- Start with customers and SBDC (advising, financials, cybersecurity, e-commerce)—de-risk your story. (nhsbdc.org)
- Work with a community bank or credit union and ask about BFA participation or guarantee; if you’re a fit, SSBCI-backed structures can lower collateral requirements and rates. (U.S. Department of the Treasury)
- Target Millworks Fund for first institutional seed in NH; pair with angels (e.g., 10X alumni networks, industry operators). (Millworks Fund)
- Tap university programs (UNH, Dartmouth) for non-dilutive grants, competitions, interns, and lab access. (UNH)
- Enter NHTA competitions and showcases (POY, Innovation Summit), which help with customers and investors. (New Hampshire Tech Alliance)
5) Clusters & Case Studies: What’s Working
Manchester’s Millyard: from DNS to biofabrication. The 2016 acquisition of Dyn—the Manchester DNS and internet-performance company—for a reported price “north of $600 million” put the Millyard on the national startup map and seeded second-generation operators and investors. (New Hampshire Public Radio)
DEKA Research continues to concentrate engineering talent in medical devices and robotics, employing ~1,000 in Manchester and radiating supplier and spinoff activity (contract design, advanced manufacturing, talent training). (dekaresearch.com)
ARMI | BioFabUSA gives NH a federally backed advanced-manufacturing institute focused on regenerative medicine, with annual convenings and STEM pipelines—an unusually differentiated anchor for a small state. (ARMI)
Digital health and medtech: PillPack, co-founded in Manchester and Somerville, drew a landmark acquisition by Amazon in 2018, signaling that NH can produce venture-scale healthtech outcomes. (NH Business Review) Pirouette Medical (Portsmouth) took NHTA’s 2024 Product of the Year for an emergency naloxone auto-injector, tying NH innovation to an urgent public-health need. (New Hampshire Tech Alliance)
University-linked ventures: The Magnuson Center at Dartmouth regularly places student and alumni startups in global competitions (e.g., Hult Prize), and UNH’s ECenter funnels students into grants and work-learn experiences that de-risk first ventures. (The Dartmouth)
6) Founder Playbook: Where to Go, Who to Call, What to Do (Next 90 Days)
Week 1–2: Get your operating basics right.
• SBDC intake: Book an advisor. Bring your cash-flow model and customer acquisition plan; ask for a lender-ready package checklist. (nhsbdc.org)
• Banking relationship: Meet a local lender; ask explicitly about BFA loan participation/guarantees under SSBCI to improve your credit options. (NH Business Finance Authority)
• Tax posture: Confirm your structure relative to BPT/BET and local excises (Meals & Rentals if relevant). DRA FAQs and bulletins are your authoritative references. (revenue.nh.gov)
Week 3–6: Network and test.
• Enter an NHTA program: Apply to the Innovation Summit Startup Showcase (fall) and track POY timelines; even if you don’t win, the feedback loop and press matter. (New Hampshire Tech Alliance)
• Campus connectors: If you’re near Durham or Hanover, meet ECenter or Magnuson staff. Line up interns for the coming semester; student teams can prototype and market-test quickly. (UNH)
• Sector-specific anchors: Healthtech/biomanufacturing? Visit ARMI/DEKA events; ask about facilities and supplier-partner introductions. (Manufacturing USA)
Week 7–12: Capital and customers.
• Millworks & angels: Use warm intros (SBDC, NHTA mentors, alumni) to pitch Millworks Fund II and local angels (10X networks). Emphasize revenue traction and NH roots. (Millworks Fund)
• Public-private marketing: If you’re B2C or community-facing, consider sponsoring through CDFA Tax Credits to build brand and civic capital while offsetting state business taxes. (nhcdfa.org)
7) Policy and Ecosystem Gaps: Where New Hampshire Can Level Up
(A) Early-stage risk capital density. While Manchester hosts one of the country’s most active national VC platforms (Alumni Ventures), and Millworks II provides a critical seed bridge, New Hampshire still relies heavily on out-of-state venture capital, and national trends show capital concentration among a smaller set of megafunds. For NH to compete, co-investment vehicles (state-matched seed alongside angels), procurement sandboxes (early customers), and SBIR/SBTT matching could reduce financing friction for first-time founders. (Financial Times)
(B) Talent and demographics. Labor-force participation is healthy by national standards, but the state’s aging demographics and tight labor markets constrain scale. Policymakers should sustain internship subsidies, support micro-credentialing in AI/cyber/biomanufacturing, and expand STEM co-ops linking UNH, Dartmouth, and community colleges to NH employers. (ELMI and FRED data show a stable but fully-employed labor pool, limiting slack.) (nhes.nh.gov)
(C) Predictable tax environment + targeted incentives. New founders value stability. The 2025 repeal of the I&D tax is a pro-growth signal, but recurring debates about reinstatement undercut clarity. Keep BPT/BET predictable; use CDFA Tax Credits and BFA/SSBCI as surgical tools instead of broad tax churn. (revenue.nh.gov)
(D) Place-based clusters. Double-down on the Millyard/ReGen Valley as a national medtech/biofab hub; add a parallel AI/cyber and manufacturing analytics corridor (leveraging defense primes, utilities, and mid-market manufacturers) to attract dual-use capital—a fit with New North Ventures’ thesis and NHTA’s security events. (PitchBook)
8) Frequently Asked Founder Questions (With Receipts)
Q1: Does New Hampshire have a sales tax?
A: No general sales tax. You may see specific excises (Meals & Rentals, Communications). Source: NH DRA. (revenue.nh.gov)
Q2: What are the current BPT/BET rates?
A: BPT 7.5% (tax periods ending on/after 12/31/2023), BET 0.55%. Source: NH DRA. (revenue.nh.gov)
Q3: What changed in 2025 with state income taxes?
A: The Interest & Dividends tax was repealed for periods beginning 1/1/2025. Source: DRA technical release. (revenue.nh.gov)
Q4: Where can I get help preparing for a loan or investment?
A: Start with NH SBDC (free advising). For loans, ask your lender about BFA participation under SSBCI to improve terms. (nhsbdc.org)
Q5: How do I get plugged into the community?
A: NH Tech Alliance programs (Innovation Summit, Product of the Year, TechWomen) and university hubs (UNH ECenter, Dartmouth’s Magnuson Center) are the best first steps. (New Hampshire Tech Alliance)
9) A Short NH Startup “Reader’s Guide” (2025)
- NH Tech Alliance (NHTA) — Statewide convenor; programs, awards, and calendar. (New Hampshire Tech Alliance)
- Product of the Year 2024 — Winner: Pirouette Medical; meets a public-health need (opioid reversal). (New Hampshire Tech Alliance)
- UNH ECenter — Hands-on programs and competitions open across majors; ECenter Challenge with $25K prizes. (UNH)
- Dartmouth Magnuson Center — Venture education, mentorship, and global competition track. (Magnuson)
- NH SBDC 2024 Impact Report — $15.8M capital accessed; 6,500 jobs supported; $254.6M economic impact. (nhsbdc.org)
- BFA SSBCI Capital Programs — Loan participations that crowd in private lending. (U.S. Department of the Treasury)
- CDFA Tax Credits — 75% credit for business donors supporting community economic development; applies to BPT/BET. (nhcdfa.org)
- ARMI | BioFabUSA & DEKA — National-scale anchors for biofabrication and medtech in Manchester’s Millyard. (ARMI)
10) Putting It All Together: The Granite State Startup Flywheel
Talent flows from UNH and Dartmouth into DEKA, ARMI, and an expanding constellation of software and services companies. Programs like NHTA’s Innovation Summit and POY, Millworks Fund seed capital, and BFA/SSBCI credit tools connect builders with mentors, press, and financing. Policy keeps the headline tax story simple and predictable, while targeted tools like CDFA Tax Credits fund the physical spaces and nonprofits that glue the ecosystem together.
The ingredients are here. The challenge—and opportunity—is density: more founders colliding more often with customers, capital, and talent. That’s the work of calendars, showcases, and storytelling. And it’s what will turn more Manchester or Portsmouth “one-offs” into repeatable founder pathways for the whole state.
Sources & Further Reading
- Taxes & Policy
- NH DRA: Repeal of Interest & Dividends Tax (effective 1/1/2025). (revenue.nh.gov)
- NH DRA: Sales Tax FAQ (no general sales tax). (revenue.nh.gov)
- NH DRA: BPT/BET Rates (BPT 7.5%; BET 0.55%). (revenue.nh.gov)
- NH DRA & CDFA: CDFA Tax Credits (75% credit; applies to BPT, BET, Insurance Premium Tax). (resources.nhcdfa.org)
- NHFPI: Business-tax revenue and policy context (2025). (New Hampshire Fiscal Policy Institute)
- Entrepreneurship Metrics & Economy
- SBA Office of Advocacy: 2024 New Hampshire Small Business Profile (net jobs, openings/closings). (Office of Advocacy)
- Kauffman: Indicators of Entrepreneurship (state profiles & data tools). (Kauffman Indicators of Entrepreneurship)
- Robert Fairlie (UCLA): Entrepreneurship Indicators (1996–2023 trendlines). (Robert Fairlie)
- FRED: NH Labor Force Participation Rate (mid-2025 ≈ 65–66%). (FRED)
- NH ELMI (NHES): Vital Signs 2025 / Labor Force (771,600 in 2024, +1.3% YoY). (nhes.nh.gov)
- BLS: NH Economy at a Glance (labor force and employment snapshots). (Bureau of Labor Statistics)
- Capital & Programs
- NH BFA: Homepage; SSBCI Capital Programs (loan participations); Early-Stage Capital / Millworks II. (NH Business Finance Authority)
- NH SBDC: 2024 Impact Report; overview & programs. (nhsbdc.org)
- NHTA: Product of the Year 2024 (Pirouette Medical); Innovation Summit/Startup Showcase; TechWomen. (New Hampshire Tech Alliance)
- Anchors & Case Studies
- DEKA Research (about; Manchester Millyard footprint). (dekaresearch.com)
- ARMI | BioFabUSA (mission; Manchester events). (ARMI)
- Dyn acquisition (Oracle press release; NHPR). (Oracle)
- PillPack acquisition (NHBR; MIT Sloan). (NH Business Review)
- National VC Context
Closing
For founders, the play is simple: start with customers, use SBDC to sharpen the plan, structure finance with BFA/SSBCI if bankable, pitch Millworks and angels for seed, and show up—at NHTA, at campus centers, and in the Millyard. For policymakers, stay the course on simple, stable taxes; scale what’s working (SBDC, BFA, CDFA); and concentrate bets around NH’s authentic clusters. That’s how the Granite State turns more local ingenuity into durable companies—and a stronger, more resilient economy.
