(Editor’s note: This is the fifth in an occasional series focused on questions from Providence Business News readers for R.I. Commerce Corp. Secretary Elizabeth M. Tanner. See previous installments here.)
1. What are the primary reasons Rhode Island isn't nearly as competitive a business environment as our neighbor Massachusetts?
According to the recent
U.S. News & World Report “Best States for 2025” report, Rhode Island ranked 24th overall, representing a 10-spot jump since Gov. [Daniel J.] McKee took office in 2021.
Rankings in this study are based on eight key indicators: Economy, Fiscal Stability, Opportunity, Education, Health Care, Crime, Infrastructure and Natural Environment.
From 2021 to 2025, Rhode Island’s “Economy” ranking climbed 12 places, from No. 28 to No. 16. Within the “Economy” category, Rhode Island is currently ranked No. 8 in the nation in the “Business Environment” subcategory, which is a one spot increase from 2024. In the past year alone, the state has surged 18 places to reach No. 14 in the “Growth” subcategory. Massachusetts’ “Economy” ranking for 2025 was No. 11, only five spots higher than Rhode Island.
Rhode Island also climbed nine places from No.33 to No. 24 in the “Opportunity” category. It also improved by 11 places over the year in the “Short-term Fiscal Stability” category.
So, while there is no doubt still much work to do, we have already begun seeing the fruits of our strategic investments which are guided by the state’s RI 2030 plan. We have positioned our state, workforce and economy for long-term success.
- Do you think Rhode Island will ever allow ADUs [Accessory Dwelling Units] to be converted into condo units similar to what California is doing? This could allow younger generations to build equity and allow older generations to remain closer to loved ones without sacrificing.
In 2024, McKee signed a bill into law that gives Rhode Island homeowners the right to develop an accessory dwelling unit on their property while adhering to the stipulations in the law. The purpose of the law was to cut red tape and allow for more housing development across the state. While Rhode Island does not currently allow for the subdivision and sale of ADUs as condos like California does McKee and the state’s Department of Housing are committed to increasing homeownership opportunities. You can read more about these policies and the progress made to date in their recently released draft
Housing 2030 plan and submit comments on the plan at
the link here. You may also reach out directly to the Department of Housing to hear more about the great work they are doing.
- I own a recruiting company in Rhode Island and have been trying to contract with companies to offer recruiting services, and I have come up against a lot of red tape. I need help. I have an EIN number and opened my business through the Center For Women and Enterprise in Providence 10 years ago.
It would be helpful if we knew what type of issues you’re encountering to provide tailored advice and better assist you. Rhode Island Commerce has a Small Business Ombudsman on staff to assist small businesses navigate regulations and requirements. To get in touch with them please call 401-521-HELP [4357] or email
info@commerceri.com.
- We are a small business in Providence with concerns about the annual precious metals license renewal requirements. In a nutshell, every year, we are required to apply for a license renewal that needs: a notarized signature, a check for $50, a letter of good standing from the tax department ($50), an official copy of our annual report ($10) and fingerprinting at $45 per person ($90 in our case). In addition to paying $200, this process requires many hoops to jump through as well as lugging my disabled 78-year-old mother to Cranston.
I must be missing something, because I can't understand the need for any of these steps when it's the government itself that's the custodian of all of these records, and, surely, with having our fingerprints (which don't change year to year) on file, it should be a simple search of the criminal database on the AG's part to make sure no crimes have been committed in the intervening year. To me, it seems like a toothless exercise amounting to a money grab. But one that becomes a considerable inconvenience to the small-business owner.
I'd frankly still resent it on principle but would rather just write a check for $200 than go through all of these motions.
Thank you for your comment. Gov. McKee and Commerce are strong advocates of making processes more efficient for our state’s businesses. As such, we’d really like to hear from you to better understand more about the particulars of this licensing process (and all associated costs). Please send us a message using the
link here so that we can reach out to you directly.
(Do you have a question for R.I. Commerce Secretary Elizabeth M. Tanner? Send it to PBN Editor Mike Mello at mello@pbn.com.)
