To start a new business or to relocate, aspiring entrepreneurs should do a proper study of the business environment of various states to choose the best business state in 2023 and to achieve their business endeavors. Below mentioned States are ranked under the top 6 business states based on 86 metrics including Strong business climate, economic growth, growing market, education, workforce, financial stability, low tax rates, and reasonable business cost. The most important categories of this year are Workforce, Infrastructure, economy, and health & inclusion.
Explore CNBC’s top 6 states in the USA for business choices
1 . North Carolina
The Thar heel state North Carolina is placed first on the overall CNBC annual ranking of the best business states for the second time after 2022. It stands out due to its strong workforce and booming economy. Its workforce and economy got ranked first and third respectively by CNBC. It has the lowest tax rate, healthy housing markets, stable state finances, and bundles of skilled workers available for companies in need.
2. Virginia
The strategic location of Virginia makes it a great place for starting businesses. The easy accessibility to the US markets from Virginia and its top-class well educated and skilled workforce made it win the second position in the CNBC best business state ranking. Other advantages of establishing the business in Virginia is its advanced fiber broadband network, business-friendly tax structures, numerous incentives from the state, various workforce development programs, and affordable operating cost.
3 . Tennessee
In CNBC’s overall ranking, Tennessee has rated the third-best business state among the 50 states in the USA. It got upliftment from No 6 to No 3 this year. Tennessee got rank 3 for its infrastructure and 5 for both education and economy. In Tennessee, employers can get highly knowledgeable employees because the state has incredible community college systems.
4 . Georgia
Georgia jumped directly from No 10 to No 4 in the 2023 CNBC ranking. It secures top rank in its infrastructure and economic growth. The diverse geography of the peach state is a boon for various industries such as agriculture, logistics, tech, aerospace, etc. The laws & regulations of Georgia are business-friendly and taxes are quite fair and reasonable. various strong networking organizations are ready to support the growing companies fulfill their business endeavor either by providing finances or helping them find out business incubators and accelerators. Also, the customers of Georgia are supportive and loyal toward small businesses.
5 . Minnesota
The Land of 10,000 Lakes is placed under the top 5 in the list by defeating Texas and some other states in 2023. It got 9th position last year. The business policies of its Governor and lieutenant Governor are quite satisfying in 2023. The state is investing in the expansion of Broadband networks, and high-tech industries and just passed the biggest infrastructure bill. Its infrastructure, life, health & inclusion, and tech innovation are considered one of the best among the 50 states for aspiring entrepreneurs.
6 . Texas
The Lone Star state is rated 2 best for its young, skilled, diverse & extensive workforce and a highly strong economy. It is the best business state for entrepreneurs due to the absence of corporate tax, personal income tax, and property tax for start-ups and owners. Businesspeople can consider Texas for their small businesses because of its healthiest and fast-growing economy and very high capital accessibility. Texas is the best place for manufacturing companies as it secures an excellent position in advanced technologies among other states.
What makes a state business friendly?
Making a state business friendly requires lots of work and co-ordination from both the businesses and the state. There are numerous factors that contribute in making a state business friendly, some of them are listed below:
Taxation: Every individual and business wants to operate in states where the taxes are on the lower side and also the taxation process is smooth and simple;
Regulatory environment: Having a streamlined and efficient regulatory system giving a positive indication and attracts businesses to smoothly start and operate;
Cost of living: Affordable housings, energy, medical expenses, transportation facilities comprises to ese the cost of living for a employee and ultimately helps the business;
Economic growth: A growing economy is what everyone want to invest in and that’s what every business looks for before starting their services;
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