How do you find the friendliest places to do business? Turns out, it’s not rocket science.
All you need to do is go to the businesses themselves, which is exactly what consumer service website Thumbtack.com did. Their study, conducted over two months and ending in late January, went direct to the source and asked 1,200 local small-business owners about their business environment.
And now, the results are in.
Taking the crown as the business-friendliest state is Utah, followed by Idaho, Texas, and Virginia all with “A+” ratings. At the opposite end are Rhode Island, Illinois, and California, most likely due to the high costs of operating in those states.
To compile the rankings, Thumbtack partnered with the Ewing Marion Kauffman Foundation on a survey that focused on these main categories: Starting a business, ease of hiring, overall regulations, and training/networking.
The survey also attempted to establish a correlation between government strategies and ease of business. Overall, the highest correlation was found between licensing and permitting regulations, as well as compliance with tax regulations.
Topping the list of business friendly metro areas is Colorado Springs, Colorado. (Sacramento, California came in last.) This ranking was determined by areas that had at least 30 survey responses.
Although there are positives and negative results of studies such as this, having access more data to improve the business environment is never a bad thing.