Small Business
Texas, Florida and N. Carolina Top List of Best States for Business
Anchoring the bottom as the five worst states for business are California (No. 50), New York (No. 49), Illinois (No. 48), New Jersey (No. 47), and Connecticut (No. 46)—all repeating their ranking from last year. Mississippi was this year’s biggest gainer,
May. 21, 2017
Texas, Florida and North Carolina are the best states for business according to Chief Executive magazine’s 13th annual Best & Worst States for Business survey. It was the third straight year that Texas has topped the rankings, while South Carolina breaks into the top five for the first time, at No. 4, and Indiana ranked No. 5 for the second year in a row. The rankings reflect CEO perceptions of best and worst states based on a range of key measures.
Anchoring the bottom as the five worst states for business are California (No. 50), New York (No. 49), Illinois (No. 48), New Jersey (No. 47), and Connecticut (No. 46)—all repeating their ranking from last year. Mississippi was this year’s biggest gainer, moving up 10 places, to No. 32.
Full results and additional information can be found on ChiefExecutive.net/2017-BWStates, and in the May/June issue of Chief Executive.
The Best & Worst States for Business survey captures the perceptions of CEOs on a range of important issues. The rankings are crucial, as CEO perception drives investments in offices, factories and other facilities that bring jobs to a region. This year, more than 500 CEOs participated in the survey.
In addition to the overall state rankings, Chief Executive’s 2017 Best & Worst States for Business survey also presents individual category rankings, including workforce, taxes/regulation, living environment, and best communication of business incentives. Additionally, states were ranked by major industry, including health care, technology, financial services and retail, among others.
| Chief Executive Best & Worst States for Business | |
| Best 10 States | Worst 10 States |
| 1. Texas | 50. California |
| 2. Florida | 49. New York |
| 3. North Carolina | 48. Illinois |
| 4. South Carolina | 47. New Jersey |
| 5. Indiana | 46. Connecticut |
| 6. Nevada | 45. Massachusetts |
| 7. Tennessee | 44. Oregon |
| 8. Georgia | 43. Hawaii |
| 9. Arizona | 42. Rhode Island |
| 10. Wisconsin | 41. Maryland |
“While the top and bottom of the rankings has not changed much this year, we see a great deal of jockeying for position among the 30 states in the middle,” said Marshall Cooper, CEO of Chief Executive Group, publisher of Chief Executive magazine and ChiefExecutive.net. “It takes time to change both the tax and regulatory structure within a state and the perceptions of CEOs. Economic development corporations are playing key roles in states where we’ve seen substantial jumps in our rankings. As EDCs get more proactive, EDCs in neighboring states need to step up their games to avoid having corporate citizens poached.”
Rankings in key categories include:
- Workforce quality: 1. New Hampshire 2. Iowa 3. Utah
- Taxes and Regulation: 1. Wyoming 2. Nevada 3. South Dakota
- Living Environment: 1. Montana 2. Hawaii 3. Iowa
Other findings from the 2017 Best & Worst States for Business survey include:
- Texas ranks No. 1 for the 13th straight year, Florida is No. 2 for the fifth consecutive year.
- The same states have held the top five spots for six years running, with shuffling in Nos. 2-5.
- Nebraska and Pennsylvania each gained seven spots, to Nos. 20 and 29, respectively.
- Wyoming saw the biggest drop, 10 spots, to No. 24, and Washington State fell eight places to No. 39.
- Iowa, Nebraska, and New Mexico ranked as the top three states in terms of how well states communicated about the incentive plans they offer.