Executives Point to Texas as Top Business Climate

Corporate executives and business leaders from around the country agree: Texas has the best business climate in the U.S. Such are the findings of a survey of 322 CEOs by Development Counsellors International.

The Lone Star State trounced second and third place finishers North and South Carolina, culling nearly half of all votes. The Carolinas received 27.8 percent and 14.3 percent, respectively. Meanwhile, California was cited as the worst state for business, with 70.5 percent of executives pointing to the Golden State as the most adverse business climate.

"With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey," said DCI President Andrew Levine. "Whether accurate or misguided, perceptions about a location's business climate often play a crucial role in site selection decisions and where companies invest money and create jobs."

California and Texas, despite boasting the two largest economies in the U.S., have long been at odds over economic policy. Despite California's larger output, Texas has increasingly been recruiting businesses away from its rival, citing its limited bureaucratic and tax structure.