These Are the Top 10 Most (and Least) Business-Friendly States in America
- Posted on July 11, 2012 at 1:51pm by
Becket Adams
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Oh yes, it’s time for another “top whatever” list and, boy, it’s a good one. We’re particularly excited about this list because we feel it carries with it some political implications.
Red represents business-friendly states & blue represents, well, pretty much the exact opposite.
Using 51 metrics of competitiveness developed with input from business groups including the National Association of Manufacturers and the Council on Competitiveness, CNBC ranked each of the 50 states according to how open they are to business.
“States received points based on their rankings in each metric. Then, we separated those metrics into ten broad categories, weighting the categories based on how frequently they are cited in state economic development marketing materials,” CNBC reports.
“That way, our study ranks the states based on the criteria they use to sell themselves,” the report adds.
This year’s categories and possible point totals included:
• Cost of Doing Business (350)
• Workforce (350)
• Quality of Life (350)
• Infrastructure & Transportation (325)
• Economy (325)
• Education (225)
• Technology & Innovation (225)
• Business Friendliness (200)
• Access to Capital (100)
• Cost of Living (50)
However, for brevity’s sake, we’ll only present how the most- and least-friendly states score in the following categories:
Cost of Business: CNBC looked at each state’s tax burden, including individual income and property taxes, as well as business taxes.
“Utility costs can add up to a huge expense for business, and they vary widely by state. [CNBC] also looked at the cost of wages, as well as rental costs for office and industrial space (rental cost information furnished by CoStar Group).”
Cost of Living: “The cost of living helps drive the cost of doing business. From housing to food and energy, wages go further when the cost of living is low.”
Economy: “A solid economy is good for business. So is a diverse economy, with access to the biggest players in a variety of industries.”
That being said, CNBC ranked states based on basic indicators of economic health and growth.
Overall, revenue “performance remains positive, expenditures in most states are stable and few states have faced mid-year budget shortfalls in fiscal year 2012,” the National Conference of State Legislators reported in May.
Simply put, now that their books are in order, a few states can finally get back to focusing on business growth and job creation.
Here are the 10 most business-friendly states in the U.S.:
10. Wyoming
Cost of Business: 10
Cost of Living: 27
Economy: 1
9. Georgia
Cost of Business: 14
Cost of Living: 16
Economy: 30
8. Colorado
Cost of Business: 40
Cost of Living: 33
Economy: 33
7. South Dakota
Cost of Business: 3
Cost of Living: 30
Economy: 12
6. Nebraska
Cost of Business: 13
Cost of Living: 11
Economy: 9
5. North Dakota
Cost of Business: 16
Cost of Living: 28
Economy: 2
4. North Carolina
Cost of Business: 21
Cost of Living: 21
Economy: 31
3. Virginia
Cost of Business: 32
Cost of Living: 20
Economy: 10
2. Utah
Cost of Business: 11
Cost of Living: 6
Economy: 7
1. Texas
Cost of Business: 28
Cost of Living: 3
Economy: 5
Here are the least business-friendly states in America:
10. New Jersey
Cost of Business: 43
Cost of Living: 45
Economy: 39
9. Louisiana
Cost of Business: 9
Cost of Living: 17
Economy: 36
8. Delaware
Cost of Business: 32
Cost of Living: 37
Economy: 19
7. Connecticut
Cost of Business: 46
Cost of Living: 48
Economy: 40
6. Nevada
Cost of Business: 30
Cost of Living: 22
Economy: 50
5. Mississippi
Cost of Business: 18
Cost of Living: 8
Economy: 48
4. Alaska
Cost of Business: 44
Cost of Living: 26
Economy: 4
3. West Virginia
Cost of Business: 24
Cost of Living: 26
Economy: 7
2. Hawaii
Cost of Business: 50
Cost of Living: 50
Economy: 41
1. Rhode Island
Cost of Business: 45
Cost of Living: 44
Economy: 49
So, circling back to the beginning of this article, the big question is what, if any, are the political implications?
Well, considering that nine out of ten of the most business-friendly states are Right to Work states and that seven out of ten of the least business-friendly states are subject to forced unionism, we’d say that implies an awful lot.
Click here to see how your state stacked up.
This story has been updated.
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Comments (135)
Polbut
Posted on July 11, 2012 at 3:39pmATTENTION ATTENTION
Report Post »NEVADA
Nevada Geothermal Power may be on the verge of bankruptancy!!!!
Harry Reid’s pet project in Nevada is about to go under having used or mis-used
$535,000,000!!!! Harry where did the money go?
I am 'We the People
Posted on July 11, 2012 at 5:20pmThanks you.
Report Post »I live in Nevada, yeah sorry me, and the Geo Thermal drilling permits will not be released to those who have been approved let alone new applicants. The majority of Nevada land is owned and controlled by the federal government, not the state. We have some of the richest land in the union, as far as energy and mineral potential go, but we cannot do anything with it.
/rage
stix_n_stones
Posted on July 11, 2012 at 6:54pmFrom Nevada here too, and if the geo thermal goes belly up well it was stupid we would be better off using nuclear energy because its one of the most efficient energy’s there is.
Report Post »Hrothgar
Posted on July 11, 2012 at 9:09pmFrom Nevada too. I have no problem with the geothermal plants as they provide jobs and tap on our states resources. I would have liked to have seen the clean coal plant built by Ely, but that was pissed down the drain by Numb Nuts (Reid). I have been to one in particular in Dunphy that is operated via DTE Energy and Newmont Mining Corp. That plant is ridiculously clean, I have never seen a puff of smoke out of that plant or any of this toxic vapor that worries all the tree huggers. Compared to the plant at Valmy this one is like the Mercedes Benz of coal plants and Valmy is more like a Ford Pinto that burns oil.
Report Post »I disagree that Nevada is a poor place for business, we do have one of the lowest corporate tax rates and the pleasure of having no income tax. Apple has decided to relocate some of its current operations into Reno, NV to avoid the overbearing Kalifornja taxes. I can’t speak for Las Vegas as that is a tourism based city but where I live mining is king and affords great jobs for those willing to work. I wish the state would fight to claim the land that is theirs so that the state could actually flourish.
STIX: I agree that nuclear power is clean and is the highest efficiency power production there is, bar none.
Delta D-5-3
Posted on July 11, 2012 at 9:31pmI lived in Connecticut until last year. I can not even describe to you how bad that state is towards businesses. The Progressive governor (Malloy) is a real piece of work. He pushed through 1.5 BILLION in new taxes and continued the “business as usual” attitude most Progressives strive for. Needless to say, I had enough and got the hell out of that **** hole! Best move ever for me and family!!
Report Post »Texas Chris
Posted on July 11, 2012 at 3:21pmTEXAS!!!
God (continue to) Bless Texas!
Report Post »bumfuzeled
Posted on July 11, 2012 at 3:45pmAmen
Report Post »BMF
Posted on July 11, 2012 at 6:34pmDitto!
Report Post »eric6161
Posted on July 11, 2012 at 6:57pmTexas is very bad right now… if you‘re coming from California I’d go towards NJ or Michigan… they’re doing much better than we are. You might not believe this… but in Texas if don’t do the work the boss pays you to do… they fire you and there is nothing you can do about it. If you need medical help you get the best medical care in the world but if you are poor and can’t afford it… you have to wait in line with all the others to get help… and they don’t take you in the order you came in… they take you by the seriousness of your injury/sickness.
Report Post »STAY AWAY FROM TEXAS… HORRIBLE CONDITIONS THERE
Nathaniel Horn
Posted on July 11, 2012 at 8:00pmLoL… I was thinking about Californicating Texas but too flat and too humid and Texans in general don’t seem to care much for outsiders- (and hide it not at all) for at least the first three generations or so, anyway. :) So you are safe for now. I think I’ll stick around here in California. The whole state is going bankrupt city by city. That’s just too entertaining to walk away from… :) Maybe soon I’ll have the beach all to my self, well except for the Zombies of course…
Report Post »rayne
Posted on July 11, 2012 at 8:18pmIf you’re coming from CA, it’s REALLY bad in Utah too. Just keep on driving. Really, horribly, stupendously bad right now. I know they make it sound all nice and friendly and all, but it’s not worth it. Yeah, if you’re from CA, better not come to Utah . . .
Report Post »From Virginia
Posted on July 11, 2012 at 8:34pmYeah! The same in Virginia! It’s TERRIBLE right now! If you‘re from California or the west coast or ESPECIALLY from Maryland DON’T COME HERE!!
Report Post »Nathaniel Horn
Posted on July 11, 2012 at 8:50pmYeah Rayne, that is so true… I’ve driven (Don’t fly any more due to the Air Gestapo :) through there a few times lately. I don’t know how you stand it with all of those pasty white people? All they do is work and act all responsible an’ all. What sticks in the mud. Makes me sick. The coffee and liquor are great though. Maybe that’s why I got sick? Whatever. Never saw so many naked mountains before however. Diversity behind every tree… Here in California we like ‘em with stardust in their eyes, flakes in their head and Birkenstocks on their feet. It gives everyone else something to feel superior about… :) We do what we can for ya’all.
Report Post »Mannax
Posted on July 11, 2012 at 8:55pmEric6161 Just so you know, any hospital, not just ones in TX, server the most injured first. If you come in with the flu and someone comes in that has been severely hurt, guess what, they will get treated before you do because their need is more urgent than yours. And MI is not doing well either.
Report Post »Nathaniel Horn
Posted on July 11, 2012 at 9:05pmVirginia? It‘s pretty and green an’ all but Dude, gag me with a spoon. Who needs green when you got the Valley, man? We put breeks in the trunk and go cruisin’ two tacos off the ground… man. When was the last time you seen that in Virginia? eh?
Report Post »Jase
Posted on July 11, 2012 at 9:16pmI was born in Texas but I have always failed to understand what is so great about that state; it’s hot and flat, the people are usually grumpy and downright mean, there are trucks EVERYWHERE that drive about 80mph on 2-lane highways (I HATE that, and I’m a truck driver), the big cities are filled with ghetto-trash types that have no respect, also high crime rates in the cities.
Sorry, but I’ll take the beauty of far-north California, or the Sierra Nevadas, or east San Diego county over Texas any day (all three are very conservative without being miserable redneck bastions).
By the way, you don’t hear Californians complaining about all you carpetbaggers moving into their state, do you?…..(Most libs in California are originally from another state).
Report Post »crr
Posted on July 11, 2012 at 10:56pmJase,
Report Post »I can’t speak for all Texans but, as for myself I think you have made the right choice. I hope you locked the door behind you.
Jase
Posted on July 11, 2012 at 11:31pmCRR-
10/4. Gladly. I will let my dispatcher know that I am not welcome in Texas so I can’t deliver all that produce from California.
But of course you understand this must be a mutual agreement; I will agree to stay out of your hot miserable wasteland if you agree to stay out of Colorado (my state). Ok?
And be sure to spread the word to your fat neighbors, when they get back from vacationing in Colorado and California.
Report Post »reggie patrick
Posted on July 12, 2012 at 1:00amAmen!! Texas is a great state to work and live. I raised my 4 kids in San Antonio and i thank God for the legacy and the deposit of freedom that was planted at the Alamo. There is, in Texas , a cowboy spirit of liberty and a can-do attitude thats missing amoungst the yankees.
Report Post »nzkiwi
Posted on July 12, 2012 at 5:40amI laughed all the way through those comments.
You’ve brightened up my evening, guys. Thanks. :)
Report Post »LameLiberals
Posted on July 12, 2012 at 7:56amTexas was the state that with Perry’s approval APPROVED a mandatory Islam course in the public schools. When some of the parents objected and went on national TV – Perry slunk away and so did the promoters. The FACT that that could happen in Texas makes Texas questionable.
http://atlasshrugs2000.typepad.com/atlas_shrugs/2011/02/mandatory-arabic-classes-coming-to-a-school-near-you.html
Report Post »woodyee
Posted on July 11, 2012 at 2:54pmWatersrpeople –
Lead, follow, or get the hell out of the way. Get involved, but quit drying your tears on our sleeves.
Report Post »rickc34
Posted on July 11, 2012 at 3:09pmFunny I did not see California on the bad list, yet we have businesses moving to Texas all the time. Taxes are set to go up statewide per Jerry Brown the clown.
Report Post »DesdemonasCrew
Posted on July 11, 2012 at 4:14pmCalifornia came in at #40. In other words, #11 on the Bad List. Missed the top 10 by one. Can’t even get being bad right.
Report Post »pickupyurcross
Posted on July 11, 2012 at 5:36pmRick, it missed the list by 1. It’s #40 of 50. 41-50 were listed in the top 10 worst.
Report Post »oldduffer
Posted on July 11, 2012 at 2:51pmYou’ve been staying up too late at night and tired from carrying some kind of protest sign. Grab a beer or shot and relax. No smoking or snorting for you, especially if you live in a high rise apt.
Report Post »ERP
Posted on July 11, 2012 at 2:45pmI think @watersRpeople is a result of a glitch in the Matrix.
I
Report Post »watersRpeople
Posted on July 11, 2012 at 2:44pmTo become pacified and complacent is to damn your own soul – because you are saying I will be like a metal or wooden Idol that can not see and can not feel. Numb is bad, and will make you surely die.
Report Post »RJJinGadsden
Posted on July 11, 2012 at 2:50pmWATERSRPEOPLE, Her is your theme song.
Report Post »http://www.youtube.com/watch?v=hnzHtm1jhL4
RJJinGadsden
Posted on July 11, 2012 at 2:54pmDuh, “here” is your theme song.
Report Post »Nathaniel Horn
Posted on July 11, 2012 at 8:26pmLoL…
Report Post »RJJinGadsden
Posted on July 11, 2012 at 2:44pmRATIONAL MAN, more like WATERSRPEOPLE slipped out of his straight jacket at ‘the home’ and snuck into the basement to an old long forgotten computer.
Report Post »Midwest Blonde
Posted on July 11, 2012 at 2:43pmI live in Nebraska – maybe it’s time to start a business?!?
Report Post »watersRpeople
Posted on July 11, 2012 at 2:39pmHey lets go sit in Texas huffing and puffing “Restoring Love!” That ain‘t love you’re restoring ….it’s stupidity. Because “Love” is knowing there’s a Damned God.
Report Post »saranda
Posted on July 11, 2012 at 2:36pmUtah on this list makes me chuckle. Anyone in the investment world knows that most public company outright scams come out of Utah. I will avoid doing business with a company based in Utah because of the bad experiences I and many friends have had. Good place to avoid.
Report Post »SingerGuy
Posted on July 11, 2012 at 4:13pmSo you’re saying you know more about the cost of doing business in Utah than: Adobe, Ebay, Electronic Arts, the NSA, Oracle, and Twitter? Wow, impressive!
Report Post »AvengerK
Posted on July 11, 2012 at 2:35pmThank you T.S. Eliot. Should we start slashing our wrists now or wait for another sage observation on society by you?
Report Post »Rational Man
Posted on July 11, 2012 at 2:33pmForgot to take your meds again, didn’t you?
Report Post »watersRpeople
Posted on July 11, 2012 at 2:33pmAnd you won’t do diddly, because you think that some super-hero because you have been “Super-Hero” condition, will come riding in to save the day. Meanwhile as you huff and puff blowing worthless smoke, “Real” actions are taking place like shutting down Border Control Stations because the South West United States is going to be handed over to Mexico, and you will sit there huffing and puffing all the while the Mexican Military is getting set up to point their tanks at you all in Texas. But good job Glenn, just keep sitting in Texas huffing and puffing.
Report Post »Gonzo
Posted on July 11, 2012 at 2:32pmWell, aren’t you a ray of sunshine.
Report Post »The Gooch
Posted on July 11, 2012 at 6:14pmMan, I’d love to know what the original post was that got people so fired up and (predictably) got pulled.
Report Post »delawarebill
Posted on July 11, 2012 at 2:31pmWhere the heck did they get that photo of Delaware? There aren’t any hills here at all!
Report Post »Pounding_hammer
Posted on July 11, 2012 at 2:47pmThe photo looks pretty flat to me, bud
Report Post »delawarebill
Posted on July 11, 2012 at 4:16pmNow it’s a photo of Ft. DuPont. Much better!
Report Post »Xtombempty
Posted on July 11, 2012 at 6:00pmAlso known as Pea Patch Island to locals.
Report Post »BryanB
Posted on July 11, 2012 at 2:30pmYou can put Florida in Blue……..
Report Post »mydh12
Posted on July 11, 2012 at 2:29pmCA and NY don’t make the Top Ten Worst?! There is something definitely wrong with these lists.
Report Post »MAMMY_NUNN
Posted on July 11, 2012 at 2:45pmI agree how can they be left off with all the regulations.
Report Post »@SoquelCreek
Posted on July 11, 2012 at 2:47pmCalifornia ranked 40th on this survey. Would have been lower but there is good access to capital here in California and we still do well on technology. The rest of the individual scores scraped the bottom of the barrel.
Report Post »watersRpeople
Posted on July 11, 2012 at 2:27pmAnd those of you who huff and puff are as a straw-wolf, just huffing and puffing and the U.N knows you just blow hot-air.
Report Post »woodyee
Posted on July 11, 2012 at 2:24pmCalifornia is Number 40!?!?
California ranks 49th in EDUCATION!!! How dare you insult CA by putting Rhode Island at Number 50?!?
We have 1,000 times more stupid people than Rhode Island! You’re going to hear from our illustrious Gov. Jerry Moonbeam; he’s going to demand a recount!
To begin with, you left out seven states!!!!!!
Report Post »Twobyfour
Posted on July 11, 2012 at 2:59pmYou owe me for a cleaning of my monitor from a coffee residue!
Don’t worry, I am sure Californica has a potential to overcome RI in notime.
Report Post »historyguy48
Posted on July 11, 2012 at 2:21pmComrades how can this be? dear Leader loves unions so this must be backward! Right to work? Who gave anyone that right? It certainly was granted be Dear Leader so it can’t possibly count!
Report Post »Caballosinnombre
Posted on July 11, 2012 at 2:11pmThe more conservative the state the more financial freedom. Freedom from government controls is what makes this country work. I think these states understand that.
Report Post »Go Glenn
Posted on July 11, 2012 at 2:32pmYou, Sir, nailed it. Freedom equals prosperity.
Report Post »Go Glenn
Posted on July 11, 2012 at 2:37pmLet me try this again………
You, Sir, nailed it. Freedom = Prosperity
Report Post »edmundburk
Posted on July 11, 2012 at 7:45pmI don’t know Indiana is fairly conservative, and it did’t score high.
Report Post »lamarlamar
Posted on July 11, 2012 at 2:06pmMy home state Louisiana # 8 for least business friendly??? How can that be?……., there ain’t no business in Louisiana!!!
Report Post »RJJinGadsden
Posted on July 11, 2012 at 2:27pmI hope to see more Southern states on that favorable list soon. I certainly stood up and took notice that Alabama is not yet on the list. Our state government is making strides in the right direction though. It’s been peeling back 120 years of a post Civil War Democrat stranglehold. Our last Democrat governor is still in a federal prison for fraud and conspiracy…naturally, just day to day business for the Dems.
Report Post »v15
Posted on July 11, 2012 at 2:30pmYou answered your own question.
Report Post »sWampy
Posted on July 11, 2012 at 2:58pmThink they are using some old data, Mississippi passed tort reform a few years back, is doing away with inventory tax, had 2 new car plants, several plane factories, and has been making great strides to be more business friendly for a decade, hard to believe we would still be in the top 5.
Report Post »hugecatfish
Posted on July 11, 2012 at 3:40pmSwampy, I hear ya. We will always be looked at as ‘that backward rednect state’. Those businesses that you mentioned would have NEVER came here, if we really were #5 on the ‘10 worst states to do business’ list.
Report Post »From Virginia
Posted on July 11, 2012 at 9:50pm@Swampy – I was surprised to see MS on the blue list. I thought it was fairly conservative. County by county must be the problem.
Report Post »drphil69
Posted on July 11, 2012 at 2:03pmI’ve been trying to get my partner to move our business from CRAPPY NJ to LOVELY NC. Family ties suck.
Report Post »jman-6
Posted on July 11, 2012 at 4:09pmI live in the great state of NC. tell your partner thats what planes are for. We control the legislature and senate and after Nov. we will control the executive branch to. First time in 120 years so we have alot of Dem mess to fix namely taxes but were on our way!
Report Post »Individualism
Posted on July 11, 2012 at 4:11pmYeah allot of people from New York and New Jersey are moving to North Carolina, a good percentage of the people around here are from that place, including people taking their business with them.
Report Post »jonboy1903
Posted on July 11, 2012 at 4:32pmYankees, welcome to North Carolina. Just remember, we don’t care how you did it up North. Leave the atittude and ignorance behind. To bring to NC, the same junky ideas and preconceptions you left behind in your old place of residence, is just like the Mexicans coming here and trying to turn us into Mexico.
Report Post »Landon410
Posted on July 11, 2012 at 1:59pmall i can say is “DUH”
Report Post »I bet those top 10 states are all racist too!
mongastanman
Posted on July 11, 2012 at 2:11pmWhich top 10?
Report Post »Cha-Cha
Posted on July 11, 2012 at 2:14pmPlease explain how you can label an entire state racist!
Report Post »historyguy48
Posted on July 11, 2012 at 2:23pmComrade of course you can label an entire state racist! Look at Arizona, or Texas, or New Mexico, Dear Leader has said that they are all racist!Along witheveryone that doesn’t vote for him!
Report Post »VoteRightDammit
Posted on July 11, 2012 at 1:57pmOh my GOD!
YOU LEFT CALIF. OFF THE LIST COMPLETELY ??????????????
HOW ON EARTH COULD IT NOT BE WORST ???????????
Report Post »CatB
Posted on July 11, 2012 at 2:22pmMichigan also …
Report Post »John655
Posted on July 11, 2012 at 2:26pmIs CALIF. even part of the union anymore?
Report Post »HorseCrazy
Posted on July 11, 2012 at 2:28pmwa state? our cost of living is out of hand in the metro areas and the business costs are out of this world
Report Post »Rational Man
Posted on July 11, 2012 at 2:32pmYea, how can Ca. not be in the top 10 worse and Nv. can? Nv. is just a carbon copy of the sunshine state and hasn’t even caught up to Ca. yet in mediocrity and liberalism. But they are doing their best to fail.
Report Post »RJJinGadsden
Posted on July 11, 2012 at 2:40pmThere must have been too many states in the running for that position. I was rather stunned to NY was not on the ‘worst’ list either. The way that citizens and businesses are packing up and leaving. All that I can say right now is God bless Texas.
Report Post »@SoquelCreek
Posted on July 11, 2012 at 2:46pmOn this particularly survey, California missed the “Bottom 10” list by one position. California is listed as 40th place on business friendliness, thanks primarily to “access to capital.”
On MANY other surveys, California ranked well within the bottom 10 or a grade of ‘F’.
* California was ranked on 47th in the Tax Foundation’s national survey on business climate.
* Chief Executive Magazine ranks California DEAD LAST for seven consecutive years as the worst state for business–a survey of 500 nation-wide CEOs.
* California ranks an ‘F’ on business friendliness in a survey of 6,000 small business people, by the Kaufmann Foundation
* California ranked 47th on economic performance on the 2012 ALEC-Laffer State Economic Competitive Index
Report Post »Bill Rowland
Posted on July 11, 2012 at 3:42pmCalifornia was left off because it is going bankrupt, one city at a time. within a few monnths Gov Moonbeam will declare the whole state insolvent and sell it to the Chinese.
OMG Nov 6, 2012
Report Post »edmundburk
Posted on July 11, 2012 at 7:49pmDon’t forget Illinios……….
Report Post »Apple Bite
Posted on July 12, 2012 at 1:39amActually, go and read the list, California is #40….that’s right, there are 10 states that have worse records towards business than California.
Report Post »