Rhode Island is the worst state to do business, the fifth annual study found, basing its ranking on data from the federal government, RealtyTrac, the Center of Budget and Policy Priorities, Federation of Tax Administrators and Moody’s Analytics.

The Ocean State bumped Alaska out of the No. 50 spot for the first time.

The best state to do business is Virginia, boosted by an “improved” tax burden and a diverse economy, followed by: Texas, North Carolina, Georgia and Colorado.

West Virgina, at No. 46, Mississippi, at No. 47, and Hawaii, at No. 48, rounded out the bottom five with Rhode Island and Alaska.

CNBC used 10 categories to rank the states ranging from cost of doing business to technology and innovation to access to capital.

By category, Rhode Island’s highest rankings came in education and quality of life, both at No. 24. Its worst scores were infrastructure and transportation, at No. 49, and business friendliness, at No. 48.

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Only in wrote:

For those that are satisfied about RI being dead last for business, please inform me on what I am missing. Being ranked 24th for education and quality of life is ok, but will also move toward 50th if we don't allow businesses to ceate job opportunities to pay for the high cost of that education and quality of life.

As a state that relies heavily on minimally taxed institutions of higher education and other non-profit and public employers, not to mention excessive government hand-outs, it won't be long before our state goes bankrupt, forcing the people to elect conservatives to swing us too far to pro-business. We have an urgent opportunity for a moderate balance here. What are we waiting for? Wednesday, June 29, 2011|Report this

William wrote:

This is classic RI. Only when the Theresa Paiva Weeds and Gordon Fox's are removed will this state have a chance. I do see a bright side, once Central Falls and Providence file for bankruptcy, the state will have no choice but to file also. This is the only way to start over. Does anyone really think that the majority of the politicians in this state are acting on behalf of the people? The Projo does a decent job of reporting the daily garbage that happens in this state - to no avail. Wednesday, June 29, 2011|Report this

Philip from Charlestown wrote:

RI is now a worse place to do business than a state where the sun does not come up for half the year.

RI is now the worst state to do business in the United States. In last year's ranking, I concluded that sunlight was apparently an important enough asset for doing business and RI would always beat out frozen Alaska. But I was wrong.

I strongly disagree with the last part of the previous post. The Providence Journal does not do a decent job, nor does Providence Business News at calling out the problems and the strong medicine needed. I call attention to this paper, Providence Business News, that's Business News, for not sounding the alarm.

After last year's second-to-last ranking I felt sure that the editors at PBN would devote the front page of every issue to a discussion of each of the categories, why the state ranked where it did and how it could improve. Bold reporting, frank reporting, leading to a larger discussion; the conversation lead here picked up by the collective voice of all RI media. The state's own Business Paper finding a real business leadership role. This could surely lead the state back up, I thought. This must be the soul of this paper; this has to be its mission.

Maybe now is the time for the Providence Business News to do what it was founded to do. RI is at rock bottom and it is cold and dark here. Wednesday, June 29, 2011|Report this

Ken wrote:

It's a good thing they don't count Puerto Rico in this ranking system or we might make it down to 51. How do you live in between NYC and Boston and not at least have some of the crumbs of their good fortune fall off the table? This is truly pathetic and disgraceful - everyone from the Governor to the people in charge of the RI Economic Development should be called on the carpet to explain this. Wednesday, June 29, 2011|Report this

Paul wrote:

It's disturbing that a state with THIS much potential squanders it's natural resources, people resources and locational resource in such a callous and careless manner. What do successfull communities do when hard times hit? They use what they do best, offer naturally, or are composed of to move themselves toward progress.

NOT SO in the "OCEAN state". (Where the seafood is SO DELICIOUS it's at the top of the list for global chefs-and can be found in the cargo holds of ALL airlines at TF Green.... Where we build submarines so efficiently-Gen.Dynamics has named Quonset Point the MOST EFFICIENT element of their company...where we sit at the edge of the midatlantic ridge-the largest most unexplored geologic formation on the planet...where we have attracted DR. BOB BALLARD to URI's GSO making it the top institution of its' kind...where we are at the cutting edge of deepsea exploration).

We could develop these advantages to become the global leader in undersea resource mining/exploration/development creating TENS OF THOUSANDS of JOBS...but, we'd rather flail around like some pathetic "March of Brugones" in kindergarten!

Wake up, RI. Fire the liberal politicians. Hire folks with vision, integrity and imagination. Thursday, June 30, 2011|Report this

HENRY A from PROVIDENCE wrote:

The aforementioned comments from Philip from Charlestown are correct. PBN does not have its finger on the pulse of what's ailing Rhode Island and the cause and effect of the CNBC ranking. The publication continues to endorse these multi million dollar scams in which in the name of job creation corporations play states and cities against each other to win hefty RI taxpayer subsidies under the guise of economic development. PBN has since its inception, ever exposed some of these RI deals for what they are-no strings attached free rides for corporations that rarely create the number of stated jobs. In fact, after securing these these tax breaks, many companies lay people off, pay low paying wages and even relocate to other states after receiving subsidies. It would be nice if the publication could offef a clear, commonsense solution to fix the system and not worry about offending its contributors. Thursday, June 30, 2011|Report this

Steven from Providence wrote:

The majority of comments here are simply unbelieveable. While I've learned to accept a D/C- product from most locals, the comments here simply point to the fact that this state has no hope as long as we let those less educated polute the workforce. I say this as a local employer. Listening to folks argue about the cost of business (which is way less here than in places like, oh, Manhattan, Boston, Connecticut, New Jersey, etc.), blame the General Assembly for their lack of education and talent to offer employers and simply overlook the fact that they are UNTALENTED AND UNEMPLOYABLE to most companies in the new economy tells the story. Politicians didn't do this...YOU DID! When any of you are ready to grow a sack and act like a real adult let us know. Otherwise, this childish finger pointing to avoid owning up to your lack of talent is what is really destorying Rhode Island. I apologize for my tone. I'm simply frustrated. While I mean every word I say, I dont' mean to offend. Thursday, June 30, 2011|Report this

Philip from Charlestown wrote:

Steven,

I agree that blaming and finger pointing is about as productive as, well, as telling people to grow a sack! And blaming people because they are "untalented" is more of the same. I'm an employer and frustrated too.

My hope is that PBN will take this seriously. I would love to see them take this last place ranking -as the worst place to do business in the US- as a rally cry to bring out an intelligent discussion- a chance for them to lead an honest evaluation of RI's strengths and weaknesses. How can we best address our business climate weaknesses? There are some sharp new minds in government now, and there are some very well run businesses here. I'd like to hear more from them on these problems.

The blessing of last place is that it means -without doubt- that big change is needed. The way we are doing things is not working. To PBN, this is an opportunity.

If i ran the Business Paper in the state ranked worst-place-to-do-business, I would make it my stated mission to drive that ranking up. Thursday, June 30, 2011|Report this

Steven from Providence wrote:

Sorry, Philip. I'm going to stick to my guns here and place 100% of the blame for the mess this state is in on those who did it - uneducated, untalented, overly opinionated and (quite frankly) useless locals who have nothing to offer an employer today. Most locals think they deserve a $60k job on a high school diploma. Most can't pass simple math or reading comprehension. This is a fact. The vast majority of my employees are transplants and folks I've had to recruit and move here. This is no joke. Sure, regulation and taxes can are always important factors and should be tweaked. That said, believe it or not I've found my reps up at the State House to be nothing but extremely accommodating and the EDC has done some great things here. It's the lack of local talent that is holding employers back. I crinch everytime I have to fill a position and sift through mounds of applications from unqualified individuals who take no responsibility for their position. They just blame a politician or a union shop and call it a day. I've listened to the same arguement from the same people for 16 years, yet those same folks still haven't liften one finger to improve themselves. Pointing out fact and not backing down is making me come across as a jerk, but I refuse to let any low level local tell me that some union boss or state house ghost made them as useless as they are to me. Friday, July 1, 2011|Report this

Philip from Charlestown wrote:

Steven

I'm familiar with the problem you point out and I appreciate your bluntness. It's what we need more of. You cite a serious problem. And if it's true that a high percentage of the RI workforce is not trained and not interested in improving their skills, the situation does feel hopeless.

With our last place ranking in this CNBC poll, talented workers aren't coming, the ones we have, and the ones that graduate from our colleges, aren't staying.

If RI starts moving up in this poll, it's not long before people start to call it a "hot" state. Something is happening here. Momentum builds.

The path from worst to first starts with an honest look at the problems. PBN (obvious choice) , ProJo (obvious choice), WPRO (AM) (has the talent), WJAR (has the cred)- any major media outlet could consciously and seriously take up this issue and even claim credit when the state began moving up in rank.

Under the banner of "worst to first" perhaps it could be a ratings magnet?

Friday, July 1, 2011|Report this

Steven from Providence wrote:

Philip, I like your ideas. I think we need to start getting vocal about the issue and not back down. "From Worst to First" is a great moniker. Friday, July 1, 2011|Report this

William from East Greenwich wrote:

The CNBC Study should be a wake up call, however, based upon the self congratulatory reaction of those responsible for the recently passed budget, our leadership just does not seem capable of soving the problem. The budget is not a meaningful "step in the right direction." Striking a balance between taxes and spending requires people to be intellectually honest about solving the problem - this does not exist at either the Federal or State level. As for tax reform spurring job creation and investment by business, how do we insure accountability? Remember this absolute, "shareholder value" and executive compensation always trumps job creation and business investment. Hence, a large "trust gap" does exist and will continue to do so until we reconcile why it is important to provide tax deductions for lavish corporate entertainment and basic human needs. We need to leverage everything good thing that we have going for our State and stop focusing on issues that fail to bring economic stability and growth - we have a very large self esteem problem. Friday, July 1, 2011|Report this

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