Georgia climbs to number two in U.S business climate ranking

Georgia’s rank also rises in Small Business Survival Index

ATLANTA – Georgia is ranked the second best state in the nation in which to do business, according to an influential national economic development trade publication. In its November 2007 issue, Site Selection magazine ranks Georgia the state with the second best business climate in the nation, up from number four last year.      

“I am pleased that Georgia’s outstanding business and entrepreneur environment has received national recognition,” said Governor Sonny Perdue. “The ranking reflects the reality that business decisions are made for many reasons and based on the strength of the entire package, and shows that Georgia is strongly positioned to grow its stable of entrepreneurs as well as win business from both national and international companies.”

Georgia’s business environment was also ranked third in a survey of corporate site seekers across the country, which comprises 50 percent of Site Selection’s total score. This group based its scores on factors such as availability of desired work-force skills, efficiency of the permitting/regulatory process and land/building prices and supply.   The other 50 percent of the annual business climate rankings is determined by states’ performances in the company’s new plant database, which tracks new and expanded business facility activity.  Georgia has never ranked lower than 10 (2000 and 2001) in the national poll, and has been among the top four for the last four years.

“Georgia has been among a handful of states in the upper echelon of our business climate ranking for several years running," said Adam Bruns, managing editor of Site Selection.

Georgia’s business environment was ranked fourth in the country earlier this year by cable network CNBC, and the state also has received top rankings in workforce training (number one, Expansion Management magazine); fiscal policies (number one, Laffer Report) and entrepreneurial activity (number three, Kauffman Foundation). 

“Georgia’s rich resources for businesses, including our skilled workforce, transportation and logistics network, and low operating costs have encouraged top-notch companies like Newell Rubbermaid, ADP and Kia to locate or expand in our state recently,” said Ken Stewart, commissioner of the Georgia Department of Economic Development. “Top rankings like these reflect our success in maintaining a competitive edge in the global marketplace.”

For more information about Site Selection magazine and to view the rankings, visit www.siteselection.com.

In a separate study, Georgia was ranked number 12 in the nation by the Small Business Survival Index for its entrepreneurship climate in the Small Business Survival Index, vaulting 13 places from number 25 in 2006.  The Small Business Survival Index scores each state and the District of Columbia on 31 factors, including taxation, regulatory environment, health care and other costs to doing business. Some of the areas in which Georgia scored the best include adjusted unemployment taxes, government spending trends and highway cost effectiveness.

“Obviously we are delighted that the Small Business and Entrepreneurship Council has recognized Georgia’s efforts to produce a climate that is conducive to small businesses in Georgia,” Sen. Chip Pearson (R-Dawsonville), who co-chairs the Senate and House Small Business Initiative with Rep. Ron Stephens (R-Savannah), said today.  “During one of our earlier meetings, SBEC economist Dr. Raymond Keating told us what we needed to do to improve Georgia’s rankings and benefit the small business community.  “After all,” Sen. Pearson continued, “small business is the backbone of our economy.”

The Small Business and Entrepreneurship Council noted that the rate of job creation during that period was 70 percent faster in the top 25 states in the index versus the bottom 26. The population growth of the top 25 states is double the rate of the bottom 26, demonstrating the impact of an entrepreneur-friendly climate on a state’s overall economic health.

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