A new study ranks states on how good a job they do in allowing businesses to thrive.

The research was conducted by the law firm Schmidt & Clark and was based partly on the number of business applications each state generated over one year ending in November 2023.

The law firm also looked at the states' annual real gross domestic income changes in the third quarter, and how the states ranked for the year in customer friendliness and business failures for the year since March 2022.

“Business is the driving force of America," the law firm said in a press release. "In fact, small businesses generate 1.5 million jobs per year in the United States."

The following states in ascending order were rated as the best states for business owners:

10. South Dakota

The state reported 100 business applications per 100,000 residents and saw an 8% increase in applications last year.