Methodology: 25 Best Cities + Towns For Doing Business in RI

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Thursday, March 14, 2013

Tracey Minkin, GoLocalProv Features Editor, with Scott O'Leary

To rank the Best Cities + Towns For Doing Business In Rhode Island, GoLocal's researchers utilized a set of metrics that sought to capture the local competitive advantages of each municipality. 

GoLocal's metrics were grouped into three categories: Financial climate, resources, and prospects for growth.

The data

To describe financial climate, GoLocal utilized two municipal tax rates--commercial tax rate and personal property tax rate on business-owned goods--from the RI Department of Revenue/Municipal Finance Division. GoLocal also utilized the Cost of Living index for each city and town from Sperling's Best Places. [Cost of living is the "cost of living categories weighted subjectively as follows: housing (30%), food and groceries (15%), transportation (10%), utilities (6%), health care (7%), and miscellaneous expenses such as clothing, services, and entertainment (32%)]

To describe resources, GoLocal utilized each municipality's total labor workforce--the number of residents of working age, both employed and unemployed, with data from the RI Department of Labor and Training. GoLocal also factored in each municipality's average driving time distance from TF Green Airport--the major airport in the state, and a competitive advantage for business-related travel. The driving time estimates were obtained from Google Maps. 

To describe prospects for growth, GoLocal utilized two metrics, both from Sperling's Best Places: recent job growth (increase or decrease in available jobs over the most recent 12 month period) and future job growth (the projected increase or decrease in job availability over the next 10 years). 

The formula

GoLocal used statistical deviation to standardize and compare each of the 7 metrics, and then applied a proprietary weighting to yield the rankings. Metrics were weighted with the following proportions:

Jobs indicators: 48.9%
Tax indicators: 25.5%
Transportation indicator: 12.8%
Cost of Living indicator: 12.8%

Related Articles

• 25 Best Cities + Towns For Doing Business in Rhode Island
• New England’s Best Cities 2012
• New England’s Best-Performing Business Cities
• Top 10 Cities: New England’s Best Cities 2012
• New England’s Best Beach Towns 2012
• New England’s Best Hospitals Rated By Patients

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