Every year, CNBC ranks the best states in America for doing business. For 2024, they have evaluated all 50 states based on different factors like economy, workforce, and cost of doing business. These rankings help businesses decide where to set up shop or expand. Here are the top 10 states for business in 2024.

Key Takeaways

• Virginia is the top state for business in 2024, thanks to its excellent schools and strong infrastructure.

• Alabama has shown the most improvement this year, driven by a growing workforce.

• Texas continues to be a business powerhouse with its large economy and business-friendly climate.

• North Carolina ranks high due to its skilled workforce and favorable business costs.

• Utah is recognized for its strong economy and supportive business environment.

Virginia

Virginia has climbed to the top position in CNBC’s “America’s Top States for Business” for 2024. This is a significant improvement from 2023 when Virginia ranked second. Virginia is America’s top state for business in 2024, with an elite education system and among the nation's best infrastructure.

Key Highlights

• Infrastructure: Virginia scored particularly high in the “Infrastructure” category, ranking third. With 121 million people within a day's drive, Virginia is one of America's most accessible states. An estimated 70% of global internet traffic flows through Northern Virginia, making it a hub for data centers.

• Education: Virginia also excelled in the “Education” category, ranking first. The state boasts an elite education system that supports its workforce and economy.

Rankings

Virginia's strong performance in these categories highlights its appeal as a top state for business in 2024.

Alabama

Alabama has made significant strides in the business world, earning the title of America's Most Improved State for Business in 2024. The state climbed 22 places to reach No. 20 overall in CNBC's rankings. This impressive leap is largely due to workforce gains and solid infrastructure.

Workforce Improvements

A big increase in net migration and better performance of worker training programs led to a big jump in its Workforce ranking. Alabama moved into a three-place tie for 24th place, up from No. 44 last year.

Infrastructure

The Yellowhammer State also has an outstanding site readiness program. This new metric helped Alabama move up five spots in Infrastructure to No. 8.

Texas

Texas is ranked #3 in America's top states for business for 2024. The Lone Star State is a growth engine, being the nation's second-fastest growing economy last year, just behind North Dakota. Texas boasts one of the strongest job growth rates and only California has more S&P 500 companies. The state's fiscal health is outstanding, with ample reserves and a perfect credit rating.

However, the Texas economy isn't without its flaws. Home price appreciation has slowed faster than the national rate, and Texas homeowners are paying the 12th-highest effective property tax rate in the country. Entrepreneurship is also lagging, with new business applications rising by just 7% last year.

Key Economic Metrics

Major Corporate Headquarters

• Oracle

• Tesla

North Carolina

North Carolina stands out as a top state for business in 2024. NC ranked 2nd best state to do business in 2024. This is impressive, considering it was named the best state to do business in both 2022 and 2023 by CNBC.

The state offers a blend of supportive business elements. The formation fee is reasonably set at $125, striking a balance between accessibility and quality service. A significant advantage for entrepreneurs is the business survival rate of 77%, suggesting a nurturing and stable environment for startups. This rate reflects the resilience and potential for growth of businesses in the state.

Financially, North Carolina is poised to aid small businesses, offering an average funding of $22,019 via grants and incentives. This level of support shows the state's investment in fostering entrepreneurial ventures. The cost of living index here is 0.96, aligning closely with the national average and ensuring affordability for business owners and workers alike. With 65% of its population in the working-age category, North Carolina provides a large labor pool. The state's scaled score of 84 out of 100 reflects these combined advantages, making it a practical and promising location for new businesses.

Key Economic Indicators

Major Corporate Headquarters

• Bank of America

• Duke Energy

Utah

Utah is a standout state for business in 2024. Its strong economy and business-friendly environment make it a top choice for companies. The state offers a mix of urban and rural settings, providing diverse opportunities for businesses of all sizes.

• Economic Strength: Utah's economy is robust, with low unemployment rates and a high GDP growth rate.

• Business Environment: The state has favorable tax policies and a supportive regulatory framework.

• Quality of Life: Utah boasts a high quality of life with excellent healthcare, education, and recreational opportunities.

Washington

Washington is ranked #10 in America's top states for business for 2024. The state has a strong economy and a skilled workforce, making it a great place for businesses to grow.

• Skilled Workforce: Washington has a large number of educated workers, which helps businesses find the talent they need.

• Strong Economy: The state's economy is diverse, with industries like technology, manufacturing, and agriculture all playing important roles.

• Quality of Life: Washington offers a high quality of life with beautiful natural surroundings and a variety of recreational activities.

Overall, Washington's ranking reflects its strengths in key areas that are important for business success.

Florida

Florida is ranked No. 5 in America's top states for business for 2024. With more than 240,000 new jobs added last year, Florida's economy and labor market are hot. The housing market is balanced, with good price appreciation and strong construction, though rising foreclosures are a concern.

Economic growth in The Sunshine State is solidly in the top ten, driven by a steady influx of new residents. New business applications jumped 9% last year. Florida's credit rating is pristine, and the state is fiscally healthy, but the growth has put some pressure on budget reserves. Recently, Gov. Ron DeSantis signed a $116.5 billion budget for FY2025, reducing state spending, cutting taxes by $1.5 billion, and providing raises.

Colorado

Colorado is a rising star in the business world. The state has a 2024 legislative agenda that aims to tackle both short-term and long-term economic challenges. This agenda is designed to keep Colorado competitive now and in the future.

• Strong Workforce: Colorado boasts a highly educated workforce, making it an attractive place for businesses.

• Innovation Hub: The state is known for its innovation, especially in tech and green energy sectors.

• Quality of Life: With beautiful landscapes and a high standard of living, Colorado attracts top talent from around the country.

Georgia

Georgia is ranked No. 4 in America's Top States for Business for 2024. The Peach State has a strong and diverse economy, thanks to significant foreign direct investment. Major companies like Mercedes-Benz, Nestlé-Purina, and Adidas have established a presence here.

Economic Highlights

• Total Planned Investments (2022): $9.7 billion

• GDP (2023): $192.2 billion (+2.7%)

• Job Growth (2023): 3.8%

• Debt Rating & Outlook (Moody's): Aa1, stable

Major Corporations

• Mercedes-Benz

• Nestlé-Purina

• Adidas

Despite a slow growth in 2023, Georgia's economy remains robust and full of potential.

Minnesota

Minnesota landed sixth on CNBC's annual "America's Top States for Business" ranking for 2024, dropping out of the top 5 spot it earned last year. This state continues to be a strong contender due to its diverse economy and high quality of life.

Economic Strength

Minnesota boasts a robust economy with key industries such as healthcare, manufacturing, and technology. The state is home to numerous Fortune 500 companies, which contribute to its economic stability.

Quality of Life

Residents enjoy a high quality of life, with excellent healthcare, education, and recreational opportunities. The state's natural beauty and vibrant cultural scene make it an attractive place to live and work.

Workforce

Minnesota has a highly educated workforce, with a high percentage of residents holding college degrees. This skilled labor pool is a significant asset for businesses looking to innovate and grow.

Infrastructure

The state offers excellent infrastructure, including a well-maintained transportation network and reliable utilities. This makes it easier for businesses to operate efficiently and connect with markets across the country.

Business Environment

Minnesota provides a supportive business environment with various incentives and resources for entrepreneurs. The state government actively promotes business growth through grants, tax incentives, and support programs.

Conclusion

In 2024, America's top states for business have shown that a strong economy, good schools, and solid infrastructure are key to success. States like Virginia have set a high bar with their excellent education systems and reliable infrastructure. Meanwhile, other states are making strides to improve their business environments. Whether you're a business owner or just curious, these rankings give a clear picture of where each state stands. Keep an eye on these states as they continue to grow and evolve. And remember, every state has its own unique strengths and challenges. Stay tuned for more updates and insights on America's top states for business.

Frequently Asked Questions

What criteria were used to rank the top states for business in 2024?

The rankings were based on 128 metrics in 10 categories like business costs, economy, workforce, and infrastructure. The criteria were developed with help from business and policy experts.

Why is Virginia the top state for business in 2024?

Virginia ranked highest due to its excellent schools and strong infrastructure. These factors make it an attractive place for businesses.

Which state showed the most improvement in 2024?

Alabama was the most improved state, thanks to a growing workforce that boosted its ranking significantly.

Why is Hawaii considered the worst state for business in 2024?

Hawaii faced challenges like high costs and climate risks, which negatively impacted its ranking.

How can I find the full rankings of all states?

You can view the complete list of rankings on CNBC's website, where they detail the performance of all 50 states.

Is there a way to share my thoughts on the rankings?

Yes, CNBC welcomes feedback on social media. Use the hashtag #TopStates to join the conversation.