According to the sixth-annual CNBC study of the best states in the country to do business, Virginia ranked third out of 50 for 2012. While this is a slight drop from 2011’s rank as number one, Virginia’s leaders note that it is quite an accomplishment for the state to rank within the top three. Those looking to start businesses should know how the report analyzed the states’ business climates, how Virginia ranked compared to nearby states and some of the benefits of starting a business in Virginia.
The Categories of Competitiveness
Researchers looked at 10 different categories to determine the rankings for the best states in which to conduct business:
- Cost of doing business
- Workforce
- Quality of life
- Infrastructure and transportation
- Economy
- Education
- Technology and innovation
- Business friendliness
- Access to capital
- Cost of living
Researchers assigned each category a total possible number of points, and awarded states points in each category based on how well they performed on the 51 metrics the researchers used in their analysis.
Virginia Ranks Third
Virginia earned 1,553 out of a possible 2,500 points in the report. Experts note that the main reason Virginia fell to third place was its congestion issues. The state slipped from 10th to 33rd in infrastructure and transportation. State officials also point out that billions in projected federal spending cuts for transportation will disproportionately affect Virginia in the future as well.
Surrounding states did not fare as well as Virginia in the study. Maryland dropped from 29th to 31st in the rankings. The major areas in which the report found the state lacking were cost of business, infrastructure and transportation and cost of living. Virginia bested Maryland in seven of the 10 categories.
The Benefits of Starting a Business in Virginia
The Virginia Department of Business Assistance offers a number of resources for those looking to start businesses in the state, such a partnership among the Virginia Small Business Development Center, George Mason University, the U.S. Small Business Administration, other local colleges and universities, chambers of commerce, private companies and other entities working together to make small businesses succeed. Qualified business attorneys are also available to help business owners with their legal needs.
State leaders also point to the low taxes and minimal state spending as other benefits for starting a business in the state, as well as Virginia’s “right to work” laws.
Talk to an Attorney
Starting a business can be an exciting endeavor. It is important for people looking to start businesses to choose the type of business entity most suited to their needs. Those thinking of starting their own business should seek the assistance of an experienced business formation lawyer who can offer guidance on how they should proceed.