If you’re considering launching a business, where you choose to set up shop can have a huge impact on your success. Not just in terms of cost of living, but in terms of resources and community. What infrastructure is in place? How’s the economy growing? Are their laws or policies in place to support new business owners?
Every year, CNBC completes an expansive study of all 50 states, ranking them on 60 different ‘measures of competitiveness’ and condensing that into 10 weighted categories, including things like quality of life, business friendliness, and access to capital. Using these categories, CNBC gave each of the states an overall rank, and the result is your go-to source for where to launch your next LLC.
But, be aware, the rankings might surprise you. California, which has the fifth largest economy in the world, was not in the top ten — not even the top twenty! Neither was New York, even though the two states are what typically comes to mind when it comes to industrious states. Texas topped the list, which is understandable considering its own booming economy and low cost of doing business. Washington state came in second, and this magazine’s home base of Utah took the prize for third.
That being said, there are some factors the study fails to consider — namely, the gender pay gap. Our editor was quick to remind us that Utah currently has the worst pay gap in the country, with women only making about 70 cents on the dollar compared to men, and California and New York have the best pay for women. We’d certainly like to see a chart that took this into consideration. Next year, CNBC?
In the meantime, this list serves as an excellent guidepost if you’re considering a business-based relocation. Or perhaps, if you find your own state high on this list, you’ll discover that you’re already right where you need to be.
Check out the full chart here. Where does your state rank?