Business Climate and Economic Conditions

PUBLISHED AUGUST 2025

If you’re looking for an ego boost, might we suggest standing in the middle of the Mark Twain National Forest? From that vantage point in Wright County, you may consider yourself the center of attention in a crowd of 340 million people.

That would put you precisely at the population center of the United States—not quite equidistant from Seattle, Miami, San Diego and the coast of Maine in terms of miles, but certainly in terms of population: As many Americans would be to your left as to your right, or as many standing behind you as in front.

This is no trivial talking point: There are profoundly significant business reasons why that location is important. And those reasons are coming together to make Missouri a linchpin in the nation’s network for distributing everything from Easter hams to Honda camshafts to guitar picks to designer jeans.

The simple fact is, you can reach more Americans, faster, than anywhere else in the nation. To move one state away in any direction might indeed put you close to one slice of the American market, but it comes at the expense of adding distance to another. 

And that strategic central location—leveraging an extensive transportation network, including highways, railways, rivers, and major airports—is just one factor that makes the Show-Me State an ideal location for someone to own or operate a business, or to set down roots here working for companies rooted here.

Among other factors to consider, Missouri is consistently ranked as a cost-effective state for business, thanks in large part to low real estate prices and favorable tax policies. 

It has a low corporate income tax rate—currently 4 percent—and when it comes to affordability, the cost of living is well below the national average. In business terms, that means employees can come to work here from a higher-paying job in the major population centers, and even with a salary offset, they can still enjoy a notably higher standard of living.

Businesses here are also blessed with reliable and inexpensive energy costs below the U.S. average. In part, that comes from a mix of power sources producing energy for two major utilities that serve the state—a blend of natural-gas and coal-fired generating stations (producing 8.8 and 59.81 percent of the state’s electricity), a nuclear power plant (14.6 percent), plus wind (13.78) and solar generation (2.70). There’s even enough current in the river to provide 1.42 percent of the current in the transmission lines with hydropower, according to the U.S. Energy Information Administration. 

Not to be overlooked is the workforce component: Plenty of skilled labor in a large and qualified workforce, backed by a wide range of workforce development programs (both public and private) and by an impressive array of public and private post-secondary institutions—130 in all—turning out graduates for almost any conceivable industry.

Business incentives? Yep, they’re here. The state’s tax credits and incentives include Missouri Works, a program for job creation and investment; the Missouri R&D Tax Credit; and Enhanced Enterprise Zone tax credits to drive investment in designated areas. In addition, the General Assembly in the state capital of Jefferson City has a reputation for creating a pro-business environment by reducing regulations and streamlining processes.

Purely business considerations aside, what really stands out for many is the exceptional quality of life here, driven by rock-bottom housing costs, rich cultural heritage, extensive outdoor recreational opportunities, professional sports teams in football, baseball and soccer, and generally safe communities. 

Add it all up, and the Show-Me State does indeed have a lot to show off. Those attributes have prompted Forbes to rank Missouri No. 15 for entrepreneur-friendliness. Among the eight border states, only Illinois ranked higher, a status that might be owed to the lack of a business-tax component in that magazine’s rankings.

We pride ourselves on being a hotbed of entrepreneurship; companies with global reputations like H&R Block, Anheuser-Busch and Hallmark were all started here, and national brands with their roots here include Bass Pro Shops, Build-a-Bear Workshops, Edward Jones and Centene.  

They set up shop here for good reasons. And those reasons helped make them national brands.