The West of England Local Enterprise Partnership has had the top ranking in England.
An in depth report has looked at all 39 Local Enterprise Partnerships. It's looked at six different categories: economic potential, skills and education, cost effectiveness, quality of life, infrastructure and business friendliness.
LEP Chairman, Colin Skellett said it was pleasing to receive national recognition.
"The economy of the West of England has held up well through the recession but there is much to do to restore growth and create jobs. We now need to turn the successful early work into strong delivery. I hope this report will encourage investors to set up and grow their businesses here."
The partnership says the priority now is to build on the hard work they've already put in to improve economic growth and job prospects in the West.