CEOs Rank Best, Worst States for Business

(Chief Executive Group: Greenwich, CT) -- For the eighth year in a row, CEOs rate Texas as the No. 1 state in which to do business, according to Chief Executive magazine’s annual Best & Worst States Survey, released May 2, 2012. Florida rose one spot to take the No. 2 rank, while North Carolina slipped to No. 3. Tennessee remained at No. 4, while Indiana climbed a spot to capture the No. 5 rank. For the worst states in which to do business, CEOs rated California as the worst at No. 50, then New York, Illinois, Massachusetts, and Michigan.

The Best & Worst States Survey measures the sentiment of CEOs on business conditions around the nation. For the 2012 survey, 650 CEOs from across the country evaluated the states on a broad range of issues, including regulations, tax policies, workforce quality, educational resources, quality of living, and infrastructure. The survey was conducted from Jan. 24 to Feb. 26, 2012.

Louisiana had the biggest change in rank, rising 14 spots to be No. 13 on the list of the most attractive states in the country in which to do business. The biggest loser was Oregon, which dropped nine spots to No. 42.

The CEOs surveyed said California’s poor ranking is the result of its hostility to business, high state taxes, and overly stringent regulations, which is driving investment, companies, and jobs to other states. According to Spectrum Locations Consultants, 254 California companies moved some or all of their work and jobs out of state in 2011, an increase of 26 percent over the previous year and five times as many as in 2009.

“CEOs tell us that California seems to be doing everything possible to drive business from the state,” says J.P. Donlon, the editor-in-chief of Chief Executive magazine and ChiefExecutive.net. “Texas, by contrast, has been welcoming companies and entrepreneurs, particularly in the high-tech arena. Local economic development corporations, as well as the Texas Enterprise Fund, are providing attractive incentives. This, along with the relaxed regulatory environment and supportive State Department of Commerce, adds up to a favorable climate for business.”

Inhospitable business environments mean less jobs, as entrepreneurs and established corporations seek more cost-efficient and tax-friendly locales, says Marshall Cooper, the CEO of Chief Executive magazine and ChiefExecutive.net. “This survey shows states that create policies and incentives are rewarded with investment, jobs, and greater overall economic activity.”

For complete results, including individual state rankings on multiple criteria, methodology, and more, visit ChiefExecutive.net.

Source: Chief Executive magazine (ChiefExecutive.net)

Source: Chief Executive magazine (ChiefExecutive.net)

Source: Chief Executive magazine (ChiefExecutive.net)

Source: Chief Executive magazine (ChiefExecutive.net)

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