No. 6: Arizona
Solution Provider 500 Companies: 9
Arizona offers potential for entrepreneurs looking for a place to start a business. The state is ranked No. 3 in business opportunity and No. 10 for its innovation and growth.
Arizona is also attractive for its impressive No. 11 ranking for its relatively low labor and business costs as well as its respectable No. 17 rank for taxes and regulation. (The state is ranked No. 1 for the lowest unemployment insurance tax.) The education and experience level of its workforce, however, is only ranked a so-so No. 22.
The state's overall ranking would be even higher but for its somewhat disappointing No. 34 rank for quality of life/personal cost of living. Blame the 6.6 percent sales tax and a No. 41 ranking for crime.