Business Climate: Successful Companies Get Started and Thrive Here
How Minnesota Ranks
Minnesota ranks third in America’s Top States for Business. The North Star State’s best categories are Education and Quality of Life, grabbing the No. 2 spot for both. Minnesota has some of the best K–12 test scores in the nation.
Minnesota was the 15th best state for business, according to 2016 rankings by Forbes. Rankings included five categories. Minnesota highest rankings were second in quality of life and fifth in economic climate.
Minnesota has a stable and business-friendly environment and tax structure. According to the Council on State Taxation, Minnesota’s total effective business tax rate for state and local taxes is 4.5 percent, ranking tied for 21st and less than the national average of 4.6 percent.
In its 2017 rankings, Business Facilities ranked Minnesota as the ninth best state for Business Climate.
The Minnesota district office of the U.S. Small Business Administration (SBA) posted a record year in 2016 with 1,674 business loans through commercial banks and other lenders, totaling $506 million. Overall, the state ranked 12th in the nation in the number of loan guarantees and 15th in the nation in total dollars.
In 2016, Minneapolis was one of the 15 best cities for entrepreneurs to live and launch, according to Entrepreneur Magazine.
Minnesota brands have global reach. More than 8,600 Minnesota businesses export an estimated $30 billion in products and services to more than 200 foreign countries. These businesses represent about 87 percent of all exporters, and 23 percent of exported value.
Minnesota’s almost 800 foreign-owned businesses are located statewide. Their owners represent more than 35 countries from around the world. These businesses employed about 110,000 Minnesotans.