RI Climbs From Bottom Slot In Top States For Business Ranking

PROVIDENCE, RI — If you ever thought about starting a business in Rhode Island, a new ranking says you might be in the wrong place.

CNBC this week released its annual ranking of top states for business, which looks at how well Rhode Island and other states are doing in attracting and fostering business ownership and operations.

While Rhode Island was in the bottom 10, it saw improvement from years past. After taking last place in 2019, CNBC moved the Ocean State up four slots in the latest ranking, to number 46 out of 50 states.

"Business is choppy in the Ocean State," CNBC said. "Health care is sound, but infrastructure is aging."

To rank this year’s top states for business, CNBC scored all 50 states on 85 different metrics in 10 categories. Categories ranged from access to capital to the cost of doing business to cost of living.

This year, CNBC added a new category for life, health and inclusion, which replaced quality of life in order to include new metrics on every state’s battle against COVID-19, health care in general, and the corporate push for inclusiveness.

Each category was assigned a weight based on how hard states are pushing it in their economic development marketing. CNBC determined that by analyzing every state’s economic development website. If, for example, more states are pitching their low business costs, Cost of Doing Business carries more possible points.

In the end, states could earn a maximum of 2,500 points across the 10 categories. The states with the most points are America’s top states for business.

Read more about CNBC’s methodology to determine 2021’s top states for business.

Rhode Island received scores in all 10 categories, broken down below.

Cost of doing business

• Score: 98
• Grade: F

Infrastructure

• Score: 153
• Grade: D

Life, health and inclusion

• Score: 235
• Grade: B-

Workforce

• Score: 132
• Grade: C

Economy

• Score: 106
• Grade: D+

Business friendliness

• Score: 93
• Grade: C

Access to capital

• Score: 41
• Grade: F

Technology and innovation

• Score: 85
• Grade: C

Education

• Score: 77
• Grade: C+

Cost of living

• Score: 14
• Grade: F

For the second consecutive year, Virginia earned the distinction of the top U.S. state for business, propelled by its strong workforce and solid education system. Virginia has captured top honors five times — more than any other state — and is the first state to notch back-to-back wins.

Rounding out the top five states are North Carolina, Utah, Texas and Tennessee, respectively.

Maryland was this year’s most improved state, while Oregon posted the biggest decline. Alaska finished last.