Analysis: Colorado among best states in which to start a business

Colorado ranks seventh among the 50 states in an analysis of the best places to start and grow businesses.

Colorado ranked among the top 10 states for its business environment and access to resources, but fared less well for business costs in the analysis conducted by WalletHub.

The personal finance website used information from federal agencies, foundations and media to track 20 metrics related to startups and business growth and survival rates; access to financing, employees and other resources; and labor costs, taxes and other expenses. Business environment accounted for half the overall score, while access to resources and business costs each accounted for a quarter of the score.

Out of a possible 100, Colorado received an overall score of 52.55, seventh highest among the 50 states.

Colorado also ranked seventh overall for metrics related to business environment and ninth for access to resources. The state came in 32nd, though, for business costs.

While Colorado ranked second only to Massachusetts for the most educated population, Colorado finished dead last at 50th for the availability of human capital because of its tight labor market.

Grand Junction ranked 462nd among 1,261 small cities analyzed in a similar, but separate, analysis. Grand Junction ranked 337th for business costs, 408th for access to resources and 883rd for business environment.

Among the states, North Dakota ranked first in the analysis after placing first for business envionment and fifth for access to resources. North Dakota experienced the highest growth in the number of small businesses and offers the most accessible financing.

Texas ranked second overall, followed by Utah, Oklahoma, Nebraska and Florida. Georgia, Missouri and South Dakota also made the top 10.

New Jersey ranked as the worst state in which to start a business, followed by New Hampshire, Maryland, Rhode Island and Hawaii. Pennsylvania, Connecticut, Delaware, Alabama and Arkansas rounded out the bottom 10.