There’s Just Something About Indiana

If there's one thing about Hoosiers, it's the unshakeable pride of being a Hoosier. Not just an Indiana Hoosier from IU, but a Hoosier from the great state of Indiana. Being from this state tends to mean a lot. (If you're not from here and don't get it, don't worry. We have a movie about it. It's called... Hoosiers.)

We're a state that comes together when it matters most, and if you need proof, just look at the Indiana Pacers' magical run to the NBA Finals this year. This wasn't just a basketball team making a playoff push. This was Indiana personified. They played with grit, they played as one, and they left everything on the court. Every player knew their role, embraced it, and gave their heart to something bigger than themselves. That's the Indiana way.

When the final buzzer sounded each night, you could feel an entire state swelling with pride. Not because we had the most talent or the biggest names, but because the Pacers played like Hoosiers. They embodied what makes us who we are: hard work, humility, and an unbreakable belief that when we come together, we can compete with anyone.

That same DNA shows up in how we do business. In Indiana, entrepreneurs don't go it alone, we come together. Just like those Pacers, everyone knows their strengths and plays their role. The manufacturer down the road becomes your testing ground. The retired exec becomes your mentor. The college kid becomes your developer. People work hard to lift each other up because we understand that when one of us wins, we all win. It's the same playbook, just a different game.

What’s happening in Indiana?

Indiana’s entrepreneurial ecosystem is built to meet founders where they’re at. Whether you're launching a Main Street business or building a venture-backed startup with global goals, the infrastructure is here to support you. From local mentorship and community resources to accelerators and capital networks, Indiana has the systems in place to help businesses at every stage grow and thrive.

Like many of its neighbors, the state has doubled down on industries where it already has deep expertise and infrastructure. Manufacturing - where Indiana ranks first in the nation for % of GDP dedicated to that segment - remains a cornerstone, but it has evolved into advanced manufacturing with automation and precision technology. Life sciences continue to thrive with companies like Eli Lilly leading global innovation. Our central location has made us a logistics and supply chain hub, while agriculture has spawned a growing Agtech sector. These aren't abstract economic development talking points. They represent real communities of expertise, established supply chains, and networks of people who understand these industries from the ground up.

The Human Side of Indiana’s Ecosystem

People will make time for you in Indiana. They’ll share what they know, invite you in, make introductions, and offer support without expecting anything in return. You don’t necessarily need a polished pitch or finished product. You just need to show up, be genuine, and be willing to listen. The doors are already open.

Start with coworking and incubator spaces. These are purpose-built to bring business builders together, whether you’re launching a local service or a high-growth tech startup. Many offer free workshops, networking events, pitch nights, and mentorship programs. It’s all designed to get you in the door. They want you there.

In Indiana, coworking spaces have even come together to create the Indiana Coworking Passport (ICP), a statewide initiative that makes it easy to discover and access spaces near you. With membership to an individual coworking space, you can explore others and see what fits your style without any long-term commitment.

Indiana’s startup community is well-connected. You’ll see the same faces at programs and events across the state. The key players are everywhere, and they’re accessible.

You’ll also be close to your end users. If you're building for manufacturers, logistics firms, Agtech companies, or life sciences, your customers aren’t spread across the country. They're down the road. You can tour facilities, build relationships, and get feedback directly from the people you’re building for.

Most importantly, the broader community shows up for entrepreneurs. Friends, family, teachers, and neighbors often become your early customers, advocates, and biggest supporters. This state was built by people who started from scratch, and they haven’t forgotten what that takes. They often become early customers, provide word-of-mouth marketing, and give local entrepreneurs a chance to prove themselves.

A Favorable Climate for Starting and Scaling

What makes Indiana particularly unique in the Midwest and thereby in the nation? It is set up for whatever path makes sense for your idea, as the fundamentals are there.

Last year, Forbes ranked Indiana as the second most favorable state for starting a business, earning a composite score of 98 out of 100. The ranking evaluated 18 data points across five categories: Business Costs, Business Climate, Financial Accessibility, Economy, and Workforce.

Indiana ranked 3rd most favorable for Business Costs, 5th for Business Climate, 8th for Financial Accessibility, and 13th for Economy. These strong and consistent rankings across all categories contributed to Indiana’s overall position as the second most favorable state for entrepreneurs.

Rather than excelling in just one area, Indiana offers a well-balanced environment that supports founders from every angle. Whether you're hiring, fundraising, or scaling, Indiana provides a stable and resource-rich foundation to grow your business.

Indiana’s Higher Ed is Fueling Entrepreneurship

Another exciting development is how Indiana's universities have embraced their role as innovation hubs. There's been a real surge in support for entrepreneurship across campuses, with programs, incubators, and resources that didn't exist even five years ago. These university ecosystems aren't just producing talent anymore. They're actively fostering it, creating environments where students, faculty, and community members can collaborate on real problems.

According to The Start Midwest University Rankings: 2025, Notre Dame, Purdue, and Indiana University lead the state in founders per 1,000 alumni. Notre Dame ranks highest with 5.17, followed by Purdue at 2.03 and IU at 1.96. Purdue also leads the state in total alumni startups with 1,370, while IU leads in total alumni founders with 1,522. These three, along with Ball State and DePauw, make up Indiana’s top five in overall entrepreneurial output.

So if you've got an idea you think is worth chasing, why not start here? 

Find your people, plug into your community, and play your part. That's how ideas grow into something real, especially here in the Midwest where collaboration beats competition every time. And who knows? Maybe your startup will be the next thing that makes all of us proud to be Hoosiers.

‍Sebastian Penix is the Entrepreneur Ecosystem Navigator for the Central Indiana SBDC, based at Butler University’s Lacy School of Business. He is also the founder of Heartland Valley, a platform spotlighting startups and innovation across the Midwest. His work focuses on building connection, visibility, and momentum within the region’s entrepreneurial ecosystem.