The University of Nebraska's Bureau of Business Research ranked all 50 states on a scale that factored in 2010 statistics for percentage and per capita growth in business establishments; business formation rate; number of patents per thousand residents; and per capita gross receipts of sole proprietors and partnerships.

The bureau found that a trio of northeastern states and two western ones, Oregon and Washington, provided entrepreneurs with the best environments for starting and developing their small businesses, whether they’re start-ups or franchises.

Those five states have established histories of economic development through company creation, said bureau Director Eric Thompson: “They’ve got the investors, they’ve got a concentration of experienced entrepreneurs that allows them to create high-income entrepreneurship even in the difficult economic conditions.”

The top five states:

1. New York. Scored high in every category, improving dramatically in percentage and per capita establishment growth and scoring high in gross receipts per capita.

2. Washington. Very strong rates of establishment growth and patent activity.

3. Massachusetts. Like New Jersey, a concentration of high-revenue entrepreneurs,  plus strong innovation in one of the nation’s leading states for higher education.

4. New Jersey. Solid patent activity and business formation rates coupled with high-revenue entrepreneurs.

5. Oregon. Business formation rate above zero, a strong showing considering the economy. High rate of patent activity and establishment growth.