Home Economy Economic Activity R.I. seventh-best state in the nation for entrepreneurs, study finds

R.I. seventh-best state in the nation for entrepreneurs, study finds

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PBN Staff

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01/07/2025

statehouseimage (1) — RHODE ISLAND is the seventh-best state in the nation for entrepreneurs in 2025, according to a study by Simplify LLC. PBN FILE PHOTO/WILLIAM HAMILTON

PROVIDENCE – Rhode Island has become significantly more welcoming to entrepreneurs, according to a study by Simplify LLC. The company, an independent publication based in Wyoming that provides free guides for small-business owners, says Rhode Island now ranks No. 7 nationally after being ranked 40th a year ago. Simplify analyzed six categories of the most

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PROVIDENCE – Rhode Island has become significantly more welcoming to entrepreneurs, according to a study by Simplify LLC. The company, an independent publication based in Wyoming that provides free guides for small-business owners, says Rhode Island now ranks No. 7 nationally after being ranked 40th a year ago. Simplify analyzed six categories of the most recent data from the Census Bureau, Bureau of Economic Analysis, Tax Foundation, and the U.S. Senate to determine its ranking. Categories include job creation, consumer spending, inflation, business growth, corporate taxes and educated-worker migration. The Ocean State's 2025 rankings by category include being first for regional inflation, No. 3 for consumer spending growth, No. 7 in maximum corporate tax rate, No. 24 for a new- business growth, No. 34 for job-creation rate and No. 33 for net migration of educated workers, to earn its strong overall ranking. After being ranked No. 40 overall last year, Rhode Island led a climb of the New England states in this year’s rankings largely because of increases in job creation and consumer- spending growth, the report noted. In this year’s report, Maine is ranked No. 3, compared to No. 30 last year Vermont is ranked No. 9, up from No. 44 last year, New Hampshire is ranked No. 12 compared to No. 47, Connecticut is No. 13 compared to No. 42 and Massachusetts is ranked No. 15 compared to No. 45 in 2024. Washington is the best state for entrepreneurs in 2025, according to Simplify, driven by strong business growth and a lack of corporate income taxes, making it an appealing state to set up shop. Texas landed at No. 2 due to its high job-creation rate, influx of educated workers and, like Washington, a lack of corporate income taxes. Rounding out the top five were Maine, Nevada and Oregon. No. 3 Maine saw more consumer-spending growth than anywhere else, while No. 4 Nevada had the highest job creation rate in the U.S. and No. 5 Oregon had a particularly high rate of new-business growth. Alabama is the worst state for entrepreneurs in 2025, according to the study. That state had one of the biggest declines in new-business openings and was one of only two states to see declines in consumer spending growth year over year. Alabama has also struggled to attract a professional workforce, with about 3,000 more educated adults moving into the state than out of it in 2023. The region has a high inflation rate, with prices up 22% relative to early 2021 prices. Minnesota, Mississippi, and West Virginia also landed among the bottom five. New-business openings have fallen by 11.3% in No. 49 Minnesota, while consumer spending growth and job creation was subpar in No. 48 Mississippi and No. 47 West Virginia. Inflation was high across the board, at either 21% or 22% in each region. The full report can be found here.