Top States for Businesses

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By Andre Claudio
 

Connecting state and local government leaders

By Andre Claudio

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Virginia ranks as the top state for businesses while Alaska ranks as the worst based on 10 categories, including the cost of doing business and a high-quality workforce, according to a recent report.

Virginia tops the list for best states for businesses while Alaska ranks as the worst, according to a report by CNBC. The states were ranked by 10 categories, including the cost of doing business, a high-quality workforce, business “friendliness,” access to higher education and cost of living.

Following Virginia as the best states for businesses are:

  • North Carolina
  • Utah
  • Texas
  • Tennessee
  • Georgia
  • Minnesota
  • Colorado
  • Washington
  • Ohio

Following Alaska as the worst states for businesses are:

  • Hawaii
  • Maine
  • West Virginia
  • Rhode Island
  • Mississippi
  • Louisiana
  • Arkansas
  • Vermont
  • Kentucky

As the economy cratered during the pandemic, local and state governments offered an important financial lifeline for small businesses to help stave off some layoffs or closures as the economy tanked.

In fact, many governments are using federal relief funds to ensure equitable recovery for small businesses.

The influx of coronavirus relief funding from the American Rescue Plan Act includes ways for cities and states to help small businesses that have been disproportionately impacted by the pandemic, experts said at a virtual panel discussion during Route Fifty’s Future Cities event this fall. For example, in a number of cities, government leaders set aside relief money to upgrade and maintain “streateries,” or temporary restaurant seating areas in streets and parking spots where residents can gather safely outdoors.

To rank America’s Top States for Business in 2021, CNBC scored all 50 states on 85 metrics in 10 broad categories. Each category was weighted based on how frequently states use them as a selling point in economic development marketing materials.

For more information from the CNBC report click here.

Andre Claudio is the assistant editor for Route Fifty. 

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