News Summary

According to a CNBC analysis, Rhode Island has dropped to the fifth-worst state for business, reflecting ongoing challenges in the local economy. While Governor McKee notes strengths in quality of life, criticism mounts over insufficient government action to improve the business climate. Other rankings show progress in education and overall state quality, but experts warn that high taxes and strict regulations remain barriers for small businesses. The WalletHub study further identifies Rhode Island as the worst state to start a business, highlighting the urgent need for reform in the business environment.

Rhode Island Ranked Fifth-Worst State for Business in Latest CNBC Analysis

According to a recent analysis by CNBC, Rhode Island has been ranked as the fifth-worst state for business in the nation. The state dropped two positions from its previous ranking of 44th in 2024, indicating a concerning trend for the local business environment.

Governor Dan McKee responded to the rankings with apprehension, emphasizing that while the business climate appears unfavorable, Rhode Island scored well in other areas. The state was ranked 13th for quality of life by CNBC, highlighting its strengths in livability and community aspects.

In addition to CNBC’s evaluation, the U.S. News and World Report ranked Rhode Island 24th overall among the best states. This ranking included commendations in crucial areas such as environment, opportunity, and healthcare. Furthermore, Rhode Island made progress in education, moving up from 43rd to 33rd place, reflecting efforts to improve its educational system.

Despite these positive indicators, the poor business rankings led to criticism from various stakeholders. Ken Block, a businessman and former gubernatorial candidate, pointed out a continuous trend of low rankings that shows a lack of accountability among state politicians. Block specifically referenced the substantial investment in infrastructure, noting that it has not translated into significant improvements, citing issues like those related to the Washington Bridge.

House Speaker Joe Shekarchi argued that rather than focusing solely on national polls, the emphasis should be on how Rhode Islanders perceive their economy. He pointed to legislative efforts aimed at improving financial conditions for residents, such as the recent elimination of the car tax, as steps being taken to enhance the state’s business appeal.

Conversely, House Minority Leader Michael Chippendale remarked that the unfavorable ranking mirrors a lack of proactive measures from state leaders who have not adequately addressed the concerns of small business owners. This sentiment was echoed by Joe Powers, chair of the Rhode Island GOP, who attributed the low ranking to the perceived ineffectiveness of government management and advocated for genuine solutions to improve the business climate.

The national business landscape, particularly for small businesses, has become increasingly challenging, as reported by the National Federation of Independent Business. Owners are grappling with high taxes, stringent regulations, and elevated costs of doing business, which further exacerbate the financial struggles they face.

Recently, a WalletHub study identified Rhode Island as the worst state to start a business in 2025. The study underscored the difficulties posed by the business environment, including limited access to essential resources and high business costs. Rhode Island’s ranking in this analysis places it at the bottom of the list for startup-friendly states, positioned just ahead of Connecticut (#49) and New Jersey (#48).

In summary, the latest rankings reflect ongoing challenges for Rhode Island’s business environment. While there are areas where the state excels, significant improvement is needed to create a more favorable landscape for businesses, particularly small ones. The state’s leadership must address the concerns raised by various stakeholders to foster a more conducive atmosphere for business growth and economic development.

Deeper Dive: News & Info About This Topic

• GoLocalProv: RI Officials Weigh In on CNBC Ranking
• Wikipedia: Rhode Island
• NFIB: New State Business Rankings
• Google Search: Rhode Island business environment
• GoLocalProv: RI Ranks as Worst State to Start a Business
• Google Scholar: Rhode Island business rankings
• Newport Buzz: Best and Worst States to Start a Business in 2025
• Encyclopedia Britannica: Business

Author: STAFF HERE PROVIDENCE WRITER

PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.