Georgia was named the best state for business growth in a study measuring the greatest yearly changes in the number of businesses launched across the country.

Based on data compiled from the U.S. Bureau of Labor Statistics, business consulting firm Venture Smarter placed Georgia at the top of its ranking of U.S. states seeing the highest increases in business establishments year-over-year in 2022, assigning the state a business growth rate of 13.5%.

According to the firm’s findings, Georgia was home to 350,189 businesses by the end of 2021. This statistic increased to 397,515 in December 2022, giving the state a positive net change of approximately 47,000 establishments over the 12-month time span.

Researchers at Venture Smarter cited Georgia’s “reasonable” corporate income tax rate — sitting at 5.75% — and the benefits accompanying its Job Tax Credit program as possible stimuli behind the state’s prosperous business activity.

The Bureau of Labor Statistics recorded that Georgia’s total number of establishments decreased to 376,432 by the end of Q1 2023 in March. Data accounting for subsequent quarters has yet to be documented online.

Virginia placed second on Venture Smarter’s list, earning a business growth rate three percentage points shy of Georgia’s at 10.5%.

Neighboring states South Carolina and North Carolina also made the top-10, boasting sixth- and seventh-place rankings and business growth rates of 9.6% and 9.2%, respectively.