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Top 5 Business Friendly States of 2019

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The U.S. is still cleaning up after the recession. But that hasn't stopped the country from expanding businesses and ventures across the nation. Most of these businesses have achieved success. Since the national unemployment rate is still under 4%, employers are trying to find the right workers who can maintain their expansion efforts.

The industries range from construction to technology. Those aren't the only industries that have been flocking to these states. Most of these businesses are in the midst of major changes that have made it difficult to fulfill these positions. Some of these businesses have decided to capitalize on their business efforts in other states. Due to this reason, some of these states have become the best locations to start a business.

U.S. News scored each of these states based on many variables, including entrepreneurship, patent creation, tax burdens, venture capital, and the presence of corporations and enterprises. In addition, high rates of entrepreneurship and low tax burdens have made some of these states better than the others on this list. This list isn't exhaustive and only includes the list of the top eight states.




It's no surprise that California takes the top spot for business and patent creation. Ever heard of Silicon Valley? Many businesses, including those in the technology industry, are born there. Like Massachusetts, California has the top spot in patent creation and venture capital. However, it has low scores in relation to its high local and state taxes. California's budding entrepreneurship has made the state what it is now when it comes to business growth.

While California ranks high for its high cost of living, cost of starting a business, and taxes, it's still the best state to start a business because it's home to many entrepreneurs and startups. It has some of the most startup-friendly cities in this state. Los Angeles is the 3rd most entrepreneurial-friendly city with San Francisco coming at 7th place and San Diego ranked at 13th.

Entrepreneurs flock to this state even with its high costs. They overlook the state's cost of living. California came in at No. 4 for having the most entrepreneurs and No. 5 for having the most startups in the U.S. This could come with some hefty competition for other aspiring entrepreneurs.


2. Massachusetts


Massachusetts is one of the best states to start a new business, according to a 2018 Small Business Friendliness Survey. This state is known for its thriving entrepreneurial since most startups can be found here. There are currently over 600,000 small businesses flourishing in Massachusetts. There are so many reasons why the Bay State is the perfect state to launch a new business.

Massachusetts has a low business birth rate compared to the other states on this list. The high taxes held this state back from taking over the top spot. It even falls behind California when it comes to patent creation and venture capital. The success that Massachusetts has provided for small and large businesses is due to its strong economic growth. The reason why most of these businesses are growing and flourishing is due to the thriving economy in this state.

Massachusetts is also home to some of the best universities in the country. The talent that emerges from these higher education institutions is the most attractive to small businesses. They'll help any business succeed and reach its full potential. Most business owners knew that most of its success is reliant on a strong workforce.

Massachusetts also seems to care about smaller businesses than the other states on this list and supports on a strong network that's dedicated to someone starting a new business.


3. Colorado


Colorado doesn't stand out in any particular category. But it still ranks high across the board when it comes to entrepreneurship, patent creation, and venture capital. Delaware and Texas are the only other states on the Top 10 list that score high in every category. Both states rank at No. 13 when it comes to the business environment.


4. Washington


Forget about Silicon Valley. Amazon and Microsoft are flocking to Washington. This state has ranked high for its patent creation. While it doesn't boast big names other than Costco and Starbucks, its high levels of venture capital have it ranking high in the ratings. Washington has a low business birth rate and tax burden, which means low competition for fledgling businesses.


5. Utah


It's no surprise to see Utah on this list. It’s not only the ideal destination for corporation headquarters, as it still ranks high in entrepreneurship and venture capital. There are also many Utah events that take place due to the increased interest in patent creation and entrepreneurship.  Some of the most common events are trade shows and leadership programs that are focused on a particular industry. The technology industry specifically is seeing incredible amounts of growth in the state. This has made it the home of Silicon Slopes which due to a variety of technology companies relocating their offices to the area.

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