July 16, 2021

South Dakota ended up in the middle of the pack in the annual CNBC list of top states for business.

The state ranked No. 29 overall, down from No. 21 in 2019, the last time the survey was done.

To rank America’s Top States for Business in 2021, CNBC scored all 50 states on 85 metrics in 10 broad categories of competitiveness. Each category is weighted based on how frequently states use them as a selling point in economic development marketing materials.

“That way, our study ranks the states based on the attributes they use to sell themselves,” according to CNBC. “We developed our criteria and metrics in consultation with a diverse array of business and policy experts, and the states. Our study is not an opinion survey.”

While South Dakota topped the chart at No. 1 for business friendliness, up from second in 2019, it was hurt by ranking No. 49 for life, health and inclusion, which is a new category that includes metrics on the battle against COVID-19, health care in general and the corporate push for inclusiveness.

South Dakota also ranked No. 12 for cost of doing business, earning it a grade of B+. It received failing grades in workforce, ranking No. 47, and in technology and innovation at No. 46.

Virginia was the top overall state for business. To view the rankings, click here.