Best and Worst States for Business

DCI’s “Rating of the States” has consistently received intense attention from both the news media and the economic development community.

To determine which states are winning the “perception” contest, we asked survey respondents to name three states perceived as having the most favorable business climates in the United States. We also asked the same audience to select the three states they perceive as having the least favorable business climates among the 50 states.

The Top Five

1. Texas 49.4%
2. North Carolina 27.8%
3. South Carolina 14.3%
4. Tennessee 13.9%
5. Florida 13.5%

The Bottom Five

50.  California 70.5%
49.  New York 46.5%
48.  Illinois 24.4%
47.  New Jersey 23.5%
46.  Michigan 16.1%

The list of “least favorable business climates” has remained remarkably consistent over the years. California and New York have swapped the first and second place spots on this list since DCI first conducted the survey in 1996, with California in first place and New York in second place since 2002.

Why did the respondents select these states? What qualities are associated with a winning business climate?

Common themes of low operating costs and a pro-business environment emerge for the top five. Positive responses emphasized costs, low taxes and incentive offerings, while negative opinions cited high taxes, anti-business climates and fiscal problems/state deficits.

Do you agree with the results? Join the discussion online: Twitter Linked In