Early in 2011, Chief Executive magazine surveyed 556 CEOs, asking them to rank what they felt were the four best and the four worst states for doing business. The magazine sought insight on which states were the most and least business friendly.
For the seventh consecutive year of the study Texas was ranked No. 1. It was cited for performing well in the areas important for business creation, and for the nation’s second-lowest taxes, although respondents felt the state’s education and infrastructure needed improvement. Other states making up the top five include North Carolina, Florida, Tennessee and Georgia.
This was also the seventh time California appeared at the bottom of the rankings. It was criticized as being particularly business-unfriendly, with the CEOs surveyed noting its high tax rate and difficult regulatory environment. Joining California at the bottom of the list are New York, Illinois, New Jersey and Michigan.
The CEOs surveyed by the magazine were given three criteria on which to base their ratings: taxes and regulation, workforce quality and living environment. States ranked first through fourth best were assigned between 10 and five points, while states ranked first through fourth worst were assigned between -10 and -5 points. These were tallied and states were listed based on the resulting rankings.
Click here to see the full rankings and to read more of Chief Executive magazine’s findings.