With the addition of more than 8,300 business establishments in 2010, Washington state now ranks No. 1 in the nation in business creation, according to a new state-by-state analysis based on Bureau of Labor Statistics employment and wage information. Rounding out the top five were Massachusetts, Texas, New York and Illinois. As the Los Angeles Times lamented on Wednesday, California ranks last, having lost 4,600 businesses in 2010.
Conducted by Economic Modeling Specialists Inc. (EMSI), a nationally recognized consulting firm based in Idaho, the study ranks each state based on its net creation of business “establishments,” defined as a single physical location of some type of economic activity (a single company may have multiple establishments). The study has been cited by business lobbyists in other states in an effort to promote business-friendly state legislation and policies.
As noted here in The Stand, contrary to the negative internal rhetoric about Washington’s business climate, national studies and rankings consistently rate Washington as one of the very best states to do business. For example, the Virginia-based Small Business & Entrepreneurial Council ranks Washington as having the 5th most business-friendly tax system and the Kauffman Foundation ranks Washington 2nd in the nation for having the business climate needed to “harness the power of entrepreneurship.”
The EMSI study suggests that, despite a weak national economy, Washington continues to be a great place to do business.