America, as a whole, is a relatively friendly country to start a business. We currently have the largest GDP on the planet, weighing in at a whopping $16 trillion, and are the second largest purchasing power in the world, only surpassed by the entirety of the European Union. Many policies in our country are geared towards capital investment, and are designed to help businesses thrive. Obviously, there are still great debates to be had about the directions that we still need to take, but on the whole, America is a great place to start a business. However, even within our country, there are certain states that are better spots to take advantage of all the opportunity that America has to offer. Here are some of the most business friendly states in America…
Whenever there is a discussion to be had about states that are good for business, Utah is almost always sure to be a big contender in the conversation. In 2015, Forbes ranked Utah as the #1 state to do business in the country, and stated that the growth prospects there were better than in any other state. For having a population of less than 3 million, Utah has a huge GSP at $141 billion, or nearly $62,000 in median income. Government policies in Utah are also geared towards helping businesses set up and start to thrive, as outlined in this example of how the tax code helps businesses with company acquisitions.
High rates of migration over the past ten years have helped North Carolina climb the ranks of places to do business. There’s a good reason that people are flocking to NC, as it is one of the best environments in the country to do business. As of 2015, nearly North Carolina has a population of nearly 10 million, who bring in a GSP of $483 billion. This puts the average household income in North Carolina at roughly $47 thousand.
Hands down, one of the best regulatory environments in the country belongs to the state of Nebraska, in terms of being friendly to businesses. This type of environment has helped keep the costs of doing business quite low, which has helped increase capital in the state. Currently, with a population of less than $2 million, Nebraska is able to bring in $112 billion in gross state product. Despite this, however, job growth in Nebraska leaves much to be desired, with annual job growth stuck at around 1%.
Along with Utah, Colorado makes the Rocky Mountain region one of the best business regions in the country, and thus, the globe. Colorado’s immense success is largely due to its incredibly educated population. Over 38% of Colorado’s population holds a college degree. Because of this, the median household income in Colorado sits at roughly $61,000. This helps Colorado’s population of 5.4 million people bring in a combined GSP of $307 billion. Indeed, the immense benefit that Colorado’s residents brings to their country well overshadow the relatively higher costs to do business in the state, and help the state have reasonably high growth prospects.
Of the states that are renowned for their business environment, Texas is certainly the largest. With a population of 27 million people, Texas has a whopping $1.65 trillion GSP. This means that, in terms of economic output, Texas is only second to California. In 2015, Forbes rated Texas as the state with the best economic climate in the country. Because of this, many huge countries have begun to make their home in the Lone Star State. One thing that will help Texas accomplish even more is if the educational level of its population begins to climb, as currently less than 28% of Texans have a college education.
Washington’s great environment of business is due to its reputation for being a place where business innovation thrives. The highly educated populace of the state have made it a place for new ideas and products to take flight, which has led to a thriving tech sector. This has brought in a substantial amount of venture capital, and made Washington one of the states with the best chances for growth, second only to Utah. These prospects have given Washington a high migration rate, as well as a high, but steady job growth. Overall, the 7 million people in the state bring in a GSP of $427 billion, which has led to an average household income of over $60,000.