Virginia is the best place in the nation to do business, according to a new ranking by Forbes released Wednesday.
The “Best States for Business” — a ranking of all 50 states published for the first time by the respected business publication — put Virginia on top overall and in the top 10 in a number of key categories. Maryland ranked 11th overall.
“Virginia scored well across the board,” Forbes reported. “In fact, it ranked in the top 10 in all six big categories we looked at. No other state scored in the top ten in more than three categories.”
The six key categories included the cost of doing business, economic climate and growth prospects. Virginia was ranked No. 1 for its regulatory environment, which factored in the state’s AAA bond rating and its 6 percent corporate income tax.
Much of Virginia’s ranking was driven by Northern Virginia, which leads the Washington region in
population growth and has an exceptionally high average income.
“[The ranking] is a combination of a lot of things,” said Gerry Gordon, president and CEO of the Fairfax County Economic Development Authority. “Virginia, like Fairfax County, has been aggressive about attracting business for many, many years. Companies appreciate that. It doesn’t depend on who’s in office. Consistency is the name of the game here.”
The state has been successful in luring companies from other states. For example, Command Information, a Herndon-based next generation Internet company, recently relocated to Northern Virginia from Malibu, Calif.
Forbes reported that the state was also bolstered by the presence of several large corporations, including Northern Virginia-based Freddie Mac, General Dynamics and Sprint Nextel, all of which had sales of more than $20 billion last year.
“This ranking from Forbes confirms that what we’ve been doing for the past decade and more — keeping the tax burden as competitively low as possible, ensuring regulations are reasonable, encouraging risk-taking entrepreneurs and promoting our educated work force — is paying dividends for Virginia businesses and benefiting hard-working Virginians and their families,” said Virginia House of Delegates Speaker William J. Howell in a statement.
Where they rank
Forbes’ first “Best States for Business” ranking considered six main categories.
Virginia
» Business Costs: 10
» Labor: 4
» Regulatory Environment: 1
» Economic Climate: 8
» Growth Prospects: 10
» Quality of Life: 5
Maryland
» Business Costs: 42
» Labor: 3
» Regulatory Environment: 15
» Economic Climate: 9
» Growth Prospects: 17
» Quality of Life: 31
