A good regulatory climate and growth prospects allowed Utah to become the place in the U.S. for doing business in 2016, according to Forbes’ Best States for Business list.
The state has been on top of the best places in the country for those that want to start their own company, as evidenced by the number of new enterprises that open each year. Its technology center, which is also called Silicon Slopes, accounts for most of the growth prospects.
For companies with expansion plans, buying a business in Utah has become much easier thanks to Gov. Gary Herbert’s resolve to taper red tape. In the last seven years, almost 400 regulations have either been revoked or changed that contributed to a better business climate.
The state’s financial disposition also played a role in three rating agencies providing an AAA rating for its bonds. Only nine other states in the U.S. have the same bond rating. In addition, Utah could have been the best place for business in the country for a decade if it did not lose its status to Virginia in 2013, according to Forbes.
Much of the growth prospects in Utah can be attributed to its growing technology industry. For instance, venture capital investments rose to $1.5 billion between 2014 and 2015, which was more than double the investment in 2012-2013 worth $635 million. On the other hand, job growth in the state is expected to be the third best nationwide by 2021, according to Moody’s.
Forbes created the list of the top states based on six categories, comprising costs, employment, regulations, economy, growth prospects, and quality of life.
The Forbes list provides aspiring entrepreneurs in Utah with essential information on ideal place for opening their own company, while also giving another reason for existing businesses to continue operating in the state.