Behind the Numbers: What Makes a State Good for Doing Business
Despite
the
cloudy
outlook
of
the
US
economy, the unemployment rate, and the overall condition of the global market, many states continue to have a strong showing in terms of business. These pocket areas are primed for growth despite the economic and financial problems of the rest of the country because of their abilities to keep both the state and business owners happy. Pro-business regulatory environments, reasonable business costs, educated workforces, and a lot of support from the local governments make these states a haven for startups and businesses wanting to expand. For a detailed look behind the numbers, here are some of the vital categories for businesses that put Virginia, North Dakota, Utah, North Carolina, Colorado and other states at the top of the Best States for Businesses list.
Business Cost This analyzes the cost of doing business in a specific state, which includes labor, energy, and tax expenses. These numbers differ per state and locale, but when looking for a place to start a business, it is recommended to check how all the costs add up. Labor maybe high in certain states, but the low cost of energy and minimal taxes could cushion a company’s monthly spending.
Labor Supply Labor
supply
measures
the
workforce
available in a particular area. This includes measuring college and high school attainment of a specific locale. That is, how qualified are the people with regards to certain professions and positions. This also includes the net migration and projected population growth over the next few years. Also, the percentage of workforce represented by a union is covered here.
Growth Prospects This category measures how a state fares with regards to job, income, and gross state product growth forecasts. Virginia wouldn’t be a good place to do business if there are a higher number of businesses closing down than those opening up. If the economic and financial outlook is promising, then there’s a greater chance for it to become a reality.
Quality of Life It’s not just about the companies, but also the welfare of the workers. This takes into account the state’s poverty rates, crime rates, cost of living, school test performance, and the health of the people in the state. Obviously, a good place to live in is a good place to work in. The business-friendliness of a state not only depends on the taxes and business regulations, but also the little things. Strong economic competitiveness can only mean good things for businesses.
Resources: http://www.mycorporation.com/ http://www.sba.gov/community/blogs/which-best-state-incorporate-your-brick-andmortar-or-online-business http://www.forbes.com/sites/kurtbadenhausen/2013/09/25/virginia-tops-2013-list-ofthe-best-states-for-business/