CT Climbs From Near Bottom In Top States For Business Ranking

ACROSS CONNECTICUT — If you ever thought about starting a business in Connecticut, a new ranking shows that it's neither the best nor the worst place to open up shop. Instead, CNBC's latest ranking places the Nutmeg State solidly in the middle.

The TV network released its annual ranking of top states for business this week, which looks at how well Connecticut and other states are doing in attracting and fostering business ownership and operations. The network's latest ranking places the Nutmeg State solidly in the middle.

In the past, Connecticut has traditionally ranked poorly. It came in at No. 37 on CNBC's list of the top states for business in 2018. A year later it took the No. 35 spot. The good news is that the state saw big improvements in 2021, jumping 11 spots since the last ranking to No. 24 out of 50 states.

"Reasonable regulations and innovative workers sweeten what can be a higher-cost deal in the Nutmeg State," CNBC said.

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.

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• Here's How 'Good' Connecticut Is For Business

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.

Connecticut received scores in all 10 categories. Here’s how our state fared in each one:

1. Cost of doing business

• Score: 118
• Grade: D-

2. Infrastructure

• Score: 207
• Grade: B-

3. Life, health and inclusion

• Score: 198
• Grade: C

4. Workforce

• Score: 202
• Grade: B-

5. Economy

• Score: 124
• Grade: C

6. Business friendliness

• Score: 143
• Grade: B+

7. Access to capital

• Score: 115
• Grade: B-

8. Technology and innovation

• Score: 123
• Grade: A-

9. Education

• Score: 96
• Grade: B

10. Cost of living

• Score: 12
• 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.