Study ranks Minnesota dead last for digital business growth

Gov. Walz is fond of touting rankings that show Minnesota being a top state for business. The trouble is that, once you look at data rather than the rankings, businesses don’t act like it is. This disconnect arises because these rankings — like CNBC’s notorious annual ranking of “America’s Top States for Business” — often don’t actually measure which states are best for business but which states are most “liberal.”  

Today sees the release of a ranking that probably won’t get a press release. DesignRush reports that its:

…exclusive state analysis revealed Minnesota as the least attractive state for digital business growth this 2024, with a Business Potential Score (BPS) of 55.7. 

With 1,144 agencies competing for a search volume of 254, Minnesota’s market is highly saturated.  

The state’s low business potential can be attributed to the financial burden from taxes impacting the profitability of its digital businesses.

Minnesota faces a tax expense of $3.9 million, significantly higher than the national average tax of $2,157,000.

As a result, its tax efficiency sits low at 182% despite having a GDP of $471,820 million, making it a challenging environment for agencies to thrive.

Should we take this “study” — and I have commented before on how loosely that term seems to be defined these days — any more seriously than CNBC’s? As ever, I advise you to check the methodology yourself. Ultimately, what matters is not rankings but results. To paraphrase an old boss of mine: “Rankings for show, results for a pro.”