Utah has long been recognized for its business-friendly environment and a recent study by WalletHub confirms one more reason why.
On Monday, July 2, WalletHub released its “2018 Best and Worst States to Start a Business,” ranking Utah second overall. WalletHub evaluated all 50 states across 25 metrics in three categories – Business Environment, Access to Resources, and Business Costs – to develop the final rankings. Using sources such as the US Census Bureau and the Bureau of Labor Statistics, as well as primary WalletHub research, the study looked at key factors for the success of a fledgling company. Each metric was weighted according to its importance and then aggregated to generate each state’s final score and overall rank.
The Top Ten States:
In addition to ranking second overall, Utah claimed the number one spot in Access to Resources, which evaluates access to human, educational, and financial resources. With one of the fastest growing populations and the youngest population in the nation, Utah startups have access to a highly educated and talented workforce. The state also has numerous educational assets including 12 major universities and colleges in addition to programs designed to grow the talent pipeline, such as Talent Ready Utah. The state’s education and workforce assets make it easy to find quality talent in Utah.
Utah’s access to financial capital continues to grow as more companies start and thrive in the state. In recent years, Utah founded companies have seen an increase in the amount of venture capital funding available to them. In 2017, both Provo and Salt Lake City were among the top 20 metros with the highest venture capital deal values in the nation. The increase in availability of funding is a good sign for companies and the state alike, as a recent MountainWest Capital Network report found more companies are starting and staying in Utah as they get funding and expand. This indicates that while Utah is great place to start a business, it’s an even better place to grow a business.