Best States To Have A Business: MA Tops The List

BOSTON — Many factors are involved in the success or failure of a particular business, and one of the most important is often its location. According to a new list released by 24/7 Wall St., Massachusetts is the best state in the nation for business.

When looking at which states are best for business, factors such as regional policy, tax codes and availability of skilled workers come into play. 24/7 Wall St. also took into account the following factors in determining the Bay State's ranking:

• Real GDP change over one year: 3.1 percent
• Average earnings per job: $75,637 (second-highest in the nation)
• Adults with a bachelor’s degree: 44.5 percent (first in the nation)
• 2018 venture capital deals: 9.6 per 100,000 people

As the researchers wrote:

With a well-educated workforce and a high concentration of innovative startups, Massachusetts ranks as the best state for business. Of all adults 25 or older in the state, 44.5% have a bachelor’s degree or higher. Additionally, there were 660 venture capital deals in the state in 2018, or 9.6 for every 100,000 people, the highest rate of VC deals per capita of any state.

Massachusetts-based businesses and organizations were also granted over 7,600 patents in 2018, or 111.4 per 100,000 people, the most of any state and well above the national average rate of 49.5 patents per 100,000.

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.