When it comes to starting a new business or growing an existing one, businesses prefer states that promote the simpler business establishment, have a strong economy and offer more growth opportunities. If you want to start or expand your business to the US, you might be wondering which states are the best for business. Here you might find the answer.
The
Importance of GDP
GDP or
Gross Domestic product reflects the economy of a region. Sometimes, a state's
economic performance is referred to as the GSP or Gross State Product. They
both serve the same purpose. Letting people know how well the economy is doing by
sharing the overall production and distribution of goods in a state. Usually,
the GDP values are shared in dollars because it's a monetary representation of
how much a state either brought in or spent quarterly.
Which US
States are the Best for Business?
According
to the data on GDP for each state in Q3 of 2020, real GDP increased in all the
50 US states and even the District of Columbia. As per the US Bureau of
Economic Analysis, the real GDP for the country rose at an annual rate of 33.4%,
while the real GDP by the state increased at an annual rate ranging from 19.2%
in DC to 52.2% in Nevada.
The ten
states with the largest GDPs (in millions of dollars) as per Q3 data of 2020
are:
1. California - $3,120,386
2. Texas - $1,772,132
3. New York - $1,705,127
4. Florida - $1,111,614
5. Illinois - $875,671
6. Pennsylvania - $788,500
7. Ohio - $683,460
8. Washington - $632,013
9. Georgia - $627,667
10. New Jersey - $625,659
US Territories
Doing Well Economically
According
to the GDP data collected by the Bureau of Economic Analysis (BEA), the
following US territories are doing well economically. The data is collected for
four US territories (American Samoa, Guam, the Northern Mariana Islands, and
the US Virgin Islands) separately from the states and the District of Columbia.
Territory Nominal
GDP at Current Prices (millions of USD)
1. Puerto Rico Puerto Rico $103,138
2. Guam Guam $6,311
3. United States Virgin Islands $4,068
4. Northern Mariana Islands $1,182
5. American Samoa $638
U.S.
Fortune 500 Companies 2021 – By State
According
to data shared by the Statista Research Department on Sep 8, 2021, New York
housed the headquarters of 53 Fortune 500 companies, followed by California,
Texas, Illinois, and Ohio.
What is
the Fortune 500?
Fortune 500
is an annual list that Fortune Magazine publishes for those who are unaware.
It highlights the largest corporations in the US according to their total
revenue in a fiscal year. The list includes private and public companies and is
considered a prestigious honor by most companies.
Looking at
states where Fortune 500 companies exist and thrive is essential for
business owners who aspire to join the list someday. It also presents a
business owner with plenty of networking opportunities and enhances the growth
potential.
Read more
about the ease of doing business here.
Sources:
https://worldpopulationreview.com/state-rankings/gdp-by-state
https://en.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_GDP
https://www.statista.com/statistics/303696/us-fortune-500-companies-by-state/