Since the current Trump administration took over, it has rattled the business world with several radical moves. Some of them are the travel bans that were put on whole countries. A closer study of the effects of such moves has shown that there has been a positive impact on business since the Trump government came into power.
This has translated into increasingly business friendly environments in the United States. Below we explore the 10 most business friendly states in America today that you should consider setting up shop in.
A Countdown of America’s Most Business Friendly States
The state of Massachusetts is the most improved state jumping 10 points since 2016 to come in at number 10. The state’s educated labor force and increasing use of technological innovation helped it become one of the most business friendly states in the USA.
However, Massachusetts fares very poorly when it comes to the cost of doing business ranking at number 45. The cost of doing business is heavily influenced by the cost of living since wages paid last longer in cheaper areas. Massachusetts has the third highest cost of living for its citizens, a three point drop from its 2016 position.
With an estimated population of 6,651,194, Tennessee has the unfortunate distinction of having one of the lowest quality of life scores among the states. This may eventually pose a threat to its workforce. The redeeming quality for Tennessee is its business friendly state law and regulations. The states regulatory framework provides excellent support to the business fraternity. Tennessee’s investments in its infrastructure also help provide business with sufficient logistics to conduct their activities.
With logistics and business friendly law, Tennessee made it to the top ten by having an economy that is among the most robust in the country. It’s among the most business friendly states in the USA.
Also referred to as the Beehive state, Utah is among the most business friendly states in the USA.
An increase in infrastructure investments such as transportation has led to a robust economy that grew by 3.2% in the last quarter of 2016, a great performance. Further, Utah’s decrease in cost of living will go a long way in helping it attract talent.
A state’s availability of quality workforce is a core determinant of its friendliness to business growth. The state of Virginia performs marvelously in the workforce criteria, coming in second among the American states. The highly educated and trained workforce, however, have a steep salary demand. Hence, the cost of doing business in Virginia is quite high.
That having been said, Virginia has a business friendly legal structure. This helped the state keep its unemployment rate at 3.8% as at May 2017. It is another state among the most business friendly states in the country.
Colorado had a GDP growth of 3.6% in the final quarter of 2016. This is a result that was helped by the high-quality workforce they have at their disposal. With major private employers such as Walmart and Centura Health, Colorado has had the low unemployment rate of only 2.3 % as of May 2017.
The high labor cost is raising the cost of doing business sky high though. The employees also don’t get to enjoy all those wages as the cost of living in Colorado remained steady as the 32 most expensive state to live in.
5. North Carolina
The workforce in North Carolina is one of the best in the country. Yet, the state has a very business friendly low cost of doing business. North Carolina saw a rapid decrease in the cost of doing business since the year 2016 as can be witnessed by it coming from the 18th most expensive to the 9th position.
North Carolina also performs well in the business regulation performance with the state laws being more conducive for business. Finally, the ease of access to capital for investment in your business is another thing that helps boost North Carolina to be among the most business friendly states in the USA.
The home to Exxon Mobil, Texas has the highest quality workforce in America. Texas has also invested heavily in the state infrastructure providing the state businesses with top notch logistics and water system.
Business owners in Texas have one of the best access to capital making Texas to be in the list of the most business friendly states in the USA.
Minnesota provides its residents with one of the best quality of life amenities and quality education. The technological innovations in the state have helped the state’s economy to high levels.
However, the cost of living and of conducting business in might make potential entrepreneurs reconsider their options.
The most thriving economy in America, Georgia has excellent infrastructure and workforce for its businesses. Despite this, Georgia has a lot of improvement to make in the education sector. The low quality of life is also discouraging to potential investors, not to mention that Georgia has high costs of conducting business.
1. Washington DC
America’s capital comes in as the most business friendly state in America today. This is due to the high-level economic activity in the state that couples with a strong innovation technology wise. The Washington quality workforce, most employed by the two biggest private employers Microsoft and Costco, enjoy a high quality of life.
Business owners also have relatively easy access to capital. This helped the state have a GDP growth of 3.1%. The state should, however, begin to invest in the infrastructure and this would help to reduce the cost of conducting business for companies.
To the Business
The list above was compiled with the data collected and analyzed by CNBC. The criteria involved in assessing the companies included over sixty measures of competitiveness which they use to develop ten categories that all the states are measured against.
With this knowledge, you should be in a position to choose a state that is most business friendly state in the USA, set up your business, and start your entrepreneur life!
The images are from depositphotos.com.