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Georgia Ranked #2 by Site Selection Magazine

November 9th, 2007 Posted by Amelia

The November 2007 issue of Site Selection Magazine ranks Georgia as the #2 state in which to do business. That’s an increase from #4 last year, and a welcome boost to the state’s economic development, which has struggled in recent years.

“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.”

Corporate site seekers ranked Georgia’s business environment in third place, however, this only accounts for 50% of a state’s score under the Site Selection Magazine system. This group based their ratings on the availability of a skilled workforce, and efficiency in issuing permits. The group also considered land prices and the availability and cost of building.

The state’s overall ranking was improved by the annual business climate rankings, which account for half of the Site Selection Magazine score. This ranking is determined by the state’s performance in a database which tracks new and expanded business facility activity.

Georgia’s lowest rankings on the survey came in 2000 and 2001, when it ranked 10^th of the 50 states. Since that time, the state has ranked 4^th or better each year.

“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 Magazine.

In a separate survey, Georgia’s business environment was ranked fourth in the nation earlier this year by cable network CNBC. The state has received top rankings in workforce training (Expansion Management magazine) fiscal policies (Laffer Report) and entrepreneurial activity (the 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.”

In a separate study, Georgia was ranked number 12 in the nation 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 important to small business owners, 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.