Minnesota is the 5th best state for businesses in the country according to a CNBC study. The criteria involved things like workforce, infrastructure, and business friendliness.
University of Minnesota Professor of Strategic Management and Entrepreneurship Myles Shaver says there's one more that can't be denied.
“If I had to boil it down to one work, I’d say the word talent,” says Shaver. “If we compare the Twin Cities to other major metros in the country, we have a workforce that tends to be extremely highly educated compared to most places,” says Shaver. “They tend to be well-earning because their companies are doing well. And that’s really a source of growth for companies in the region.”
In the CNBC rankings, Minnesota performed very well in infrastructure (third), life health and inclusion (fourth), and tech and innovation (fourth). Minnesota's lowest ranking was 39th for cost of doing business.
Shaver says there's a reason why the Twin Cities’ metro is what he calls the 'most headquartered' of its size in the country, despite some less than desirable characteristics, like our winter weather and higher taxes.
“Really having an ecosystem with both small business contributing a really important part, but also having this sort of foundation of being world-class businesses that actually fuel and support each other in that way,” Shaver explained.
Shaver says Minnesota also does well due to its diversity of business, both small and large.
"The majority of highly-educated workers who move to Minnesota for jobs tend to realize they like it here," Shaver said. "Then they decide to stay put."
The top five states were (in order) North Carolina, Virginia, Tennessee, Georgia and Minnesota. Texas, which had never ranked outside the top five, was sixth.
If you’re curious about Minnesota’s neighbors, Iowa ranked 23, Wisconsin 33, South Dakota 34 and North Dakota 36.
At the bottom of the list? Alaska was ranked 50, just below Louisiana and Mississippi. You can see the entire ranking here.