Best States To Have A Business: Where Washington 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., Washington is among the best for businesses. Overall, our state places fourth.

When looking at which states are best for business, factors such as regional policy, tax codes and availability of skilled workers come into play.

From 24/7 Wall St.:

"Businesses in Washington likely benefit from lower costs of operation in some areas. For example, the average price of electricity in the state is 8 cents per kilowatt-hour, less than in all but two other states. The tax climate in the state is also more favorable to businesses than in most other states, according to analysis conducted by the Tax Foundation.

Washington’s economy expanded by 5.8% between 2017 and 2018, more than any other state economy in the country. The state’s tech sector likely was partially responsible for this growth. There were about 99 patents granted in the state for every 100,000 people in 2018, nearly double the comparable national rate of 50 per 100,000."

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

• Real GDP change over one year: +5.8% (Ranked best)
• Average earnings per job: $71,390 (5th highest)
• Adults with a bachelor’s degree: 36.7% (10th highest)
• 2018 venture capital deals: 4.9 per 100,000 people (6th 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.