SALT LAKE CITY—Davis Smith, co-founder and CEO of Cotopaxi, an outdoor gear and apparel company, offers a glimpse of why Utah’s economy is booming.

Mr. Smith said he considered launching the company in Seattle or the San Francisco Bay Area before deciding nearly five years ago to base it here, partly because of the quick access to top-notch ski resorts and bike trails, but mostly because of the young, growing and well-educated population.

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