Forbes 11th annual Best States for Business list measures which states have the best business climates and are poised to succeed going forward. Leading the way for the third straight year is Utah, which also ranked on top between 2010 and 2012. Only Virginia in 2013 interrupted Utah’s reign this decade as the Best State for Business.
Utah scores well across the board, with particularly high marks for its regulatory climate and growth prospects, which are both second best among the 50 states. Governor Gary Herbert has made cutting red tape a tenet of his administration since he was elected in 2009. He’s eliminated or significantly changed nearly 400 regulations during the past seven years. Utah also boasts a business-friendly legal climate and a fiscally sound government – it’s one of only 10 states to hold a AAA bond rating from all three ratings agencies. One marker of fiscal responsibility: State government employment is down 11% over the past five years despite an 8% rise in the population.
Utah’s growth prospects are strong in part because of a burgeoning tech sector. Venture capital investment was $1.5 billion combined in 2014 and 2015 compared to $635 million the two years prior. In April, PayPal co-founder and early Facebook investor Peter Thiel, along with Mitt Romney’s co-led venture fund Solamere Capital, announced plans to invest $100 million in Provo-based Vivint Smart Home. In a nod to its neighbor to the west and Utah’s ski terrain, the corridor connecting Ogden, Salt Lake City and Provo has been dubbed “Silicon Slopes.”