Best States To Have A Business: Where Colorado Ranks

Many factors go into determining the prosperity of a business, but each state and the groundwork it lays for potential business owners also play a big role in making or breaking a business’s chance for success.

According to a new list released by 24/7 Wall St., Colorado is among the best for businesses. Overall, our state ranks No. 3.

When looking at which states are best for business, factors such as regional policy, tax codes and availability of skilled workers come into play. The report noted that more than 40 percent of adults in Colorado have a bachelor's degree or higher, and the number of working age Coloradans is expected to climb by more than 10 percent over the next decade.

24/7 Wall St. also took into account the following factors in determining Colorado’s ranking:

• Real GDP change over one year: +3.5 percent (10th best)
• Average earnings per job: $61,617 (15th highest)
• Adults with a bachelor’s degree: 41.7 percent (2nd highest)
• 2018 venture capital deals: 5.0 per 100,000 people (4th most)

To compile this year’s list of best states for business, 24/7 Wall St. created a weighted index of 42 measures to identify the best and worst states for business. These measures fall into one of eight categories: economic conditions, business costs, state infrastructure, the availability and skill level of the workforce, quality of life, regulations, technology and innovation, and cost of living.

Data sources include the Bureau of Economic Analysis, the Bureau of Labor Statistics, and the Tax Foundation, a tax policy research organization.

Four of the top five best states for business are located west of the Mississippi River. With its well-educated workforce and a high concentration of innovative startups, Massachusetts ranks as the best state for business.

The top five best states for business are:

1. Massachusetts
2. Utah
3. Colorado
4. Washington
5. North Dakota

Read more about the methodology behind the best states for business report.

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