Florida named best state for business success in Orlando firm's study

A new study shines a light on the business environment of the Sunshine State.

Businesses are better off in Florida than the rest of the U.S, according to the recent study from Orlando-based Harrington Group International. This is the latest in a string of studies and reports over the last two years that name Florida and Orlando among the best places for entrepreneurs, women-owned businesses and foreign business investment.

To find out how Florida compares to the other top states, check out the slideshow above.

Harrington used federal data from nine metrics across three categories, including job growth, educated worker mobility, consumer spending, business growth rate, startup survival rate, business self-assessment, GDP growth, credit rating and income tax burden.

The study specifically pointed out the 134,000 people with college educations who moved to Florida last year, as well as the state's strong improvements in consumer spending and job growth. "The consumer spending and job growth rates are up year-over-year (15.6% and 4.9%, respectively). Florida also scores well on financial metrics, with a healthy S&P credit rating of AAA and just 6.9% of state tax revenue coming from corporate income taxes last year."

A reputation as a good place to do business can attract investment from companies outside Florida, which would create jobs and economic impact. For example, French jet manufacturer Dassault Aviation recently announced it will open a 175,000-square-foot maintenance facility in Melbourne by 2024. The $115 million project is expected to generate 400 high-wage jobs.

The company considered multiple sites, but it selected Brevard County due to “the business environment in Florida, along with its highly skilled workforce on the Space Coast,” Chairman and CEO Eric Trappier said at the time.

The five worst states for business, according to the report, are District of Columbia (47), Kansas (48), New York (49), Illinois (50) and Connecticut (51). More than 58% of Connecticut's revenue comes from personal and corporate income tax, while S&P gave Illinois a BBB+ credit rating, meaning they are concerned the state can't meet its financial commitments. Educated workers are retreating from New York, with more than 162,000 leaving in 2021.

Of course, Florida's business-friendly reputation doesn't mean it's a shoe-in for any project. For example, the Space Coast recently lost a planned 2,100-job, $300 million Terran orbital Corp. satellite production plant to California, which ranks 44th on Harrington Group's list.

It’s not uncommon for companies to pick less business-friendly states if they have premier relocation sites, especially in a government contract-heavy sector like aerospace where businesses want to move fast, site selection expert and principal of The Boyd Co. Inc. John Boyd previously told OBJ. 

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