Cyber Week Sale! 50% Off All Access

This U.S. State Was Named Best for Business For the Second Year In a Row CNBC just released its annual rankings for America's Top States for Business

By Jonathan Small

CNBC's annual business rankings are in, and North Carolina wins the prize for America's best state for business in 2023. It's the second straight year the Tar Heel State has earned the top spot.

The study measures all 50 states across ten categories of competitiveness, including workforce, infrastructure, healthcare, the cost of doing business, and the cost of living.

North Carolina's success at attracting and retaining talent across various industries was a big factor in its high ranking.

"Companies in desperate need of skilled workers are going where the people are, and people are going to North Carolina," said CNBC Special Correspondent Scott Cohn. "The state's well-balanced economy is handling the growth well."

North Carolina has also attracted a bucketload of investments from businesses.

In 2023, Bosch made a $130 million investment in the state to expand its power tool manufacturing facility. Cellular therapeutics company ProKidney invested $458 million in a biomanufacturing facility in Greensboro.

Apple recently filed paperwork to build a $1 billion facility in Research Triangle Park. It would be the company's first corporate hub on the East Coast.

Researchers also pointed out that North Carolina is killing it in career education.

"You have one of the most competitive community college systems in America as well in North Carolina, that is attuned to the needs of their industry," said Josh Wright, an executive vice president with labor market analytics firm Lightcast, which worked with CNBC on the study.

Related: Entrepreneurs Are Driving the Most Economic Growth In These 10 U.S. States, According to Shopify Internal Data

Struggles with health care and crime

But North Carolina also has its share of problems, which could be bad for business if not addressed.

According to FBI data, violent crime surged in NC in 2022. The state also ranks near the bottom in health care, with low public health funding and many citizens without health insurance.

Rising political turmoil could also damage the state's standing. North Carolina's Democratic Governor, Roy Cooper and Republican legislators have battled on several key issues. And this week, state Rep. Tricia Cotham changed her political affiliation from Democrat to Republican, weakening Cooper's veto power.

Other highs and lows

Virginia came in second place on CNBC's best-states-for-business list. Tennesee was third, and Georgia was fourth.

The worst state for business? Alaska. Last year, Alaska's GDP dropped by 2.4%, with oil production plummeting to 1970s levels. Meanwhile, the state ranks third as the most expensive to do business — just behind Hawaii and Massachusetts.

Jonathan Small

Entrepreneur Staff

Founder, Strike Fire Productions

Jonathan Small is a bestselling author, journalist, producer, and podcast host. For 25 years, he has worked as a sought-after storyteller for top media companies such as The New York Times, Hearst, Entrepreneur, and Condé Nast. He has held executive roles at Glamour, Fitness, and Entrepreneur and regularly contributes to The New York Times, TV Guide, Cosmo, Details, Maxim, and Good Housekeeping. He is the former “Jake” advice columnist for Glamour magazine and the “Guy Guru” at Cosmo.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

'I Just Hustled': She Earned More Than $300,000 Wrapping Gifts Last Year — and It All Started With a Side Hustle

When Michelle Hensley lost her husband to cancer, she needed to figure out how to earn an income for her family.

Business Solutions

Build Professional Websites Without Coding or Paying More Than Once

Create stunning WordPress sites easily with MaxiBlocks — a cost-effective alternative to expensive website builders like Wix and Squarespace.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Living

The Complete Car Adventure Package That Might Inspire Entrepreneurs to Camp More

The Carsule and Mottress might just upgrade any outdoor adventure.

Growing a Business

This Breakthrough Technology is Poised to Accelerate Your Company's Growth

Discover a breakthrough technology stacked on top of generative AI, now poised to revolutionize businesses across nearly every sector. Unlock unprecedented growth and profitability potential, achieving levels once thought unattainable.