Texas,North CarolinaandSouth Carolinaare viewed as having the best business climates among the 50 states, according to a new survey of U.S. corporate executives released here today.

The poll pinpointedCalifornia,New YorkandIllinoisas the U.S. states with the least favorable business climates.

Conducted by Development Counsellors International (DCI) every three years, the "Winning Strategies in Economic Development Marketing" survey has tracked trends in economic development since its inception in 1996.

"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 PresidentAndrew T. 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."

Nearly half (46%) of the 322 corporate executive who responded to the survey indicated that their firm would make a location decision in the next 24 months – whether a move, expansion or consolidation of a manufacturing plant, offices, distribution center or other facilities. More than half (51%) said that they would outsource a portion of the site selection process to a real estate broker or site selection consultant.

Texaswas the clear-cut favorite among the respondents to the survey, with 49.4% naming theLone Starstate as having one of the most favorable business climates in the nation.North Carolinaranked second with 27.8%;South Carolinahas 14.3% of the votes.TexasandNorth Carolinahave consistently landed in the top spots since the survey began more than a decade ago.Texashas held the #1 ranking since 1999, whileNorth Carolinahas been #2 since 2002.South Carolina,TennesseeandFloridahave frequently traded top positions in the survey and2011 marksthe return ofSouth Carolinato the #3 slot.

When asked why they selected the states they did as being best for business, the corporate executives frequently cited low operating costs and a pro-business climate. In the 2008 survey, more executives pointed to the availability of a strong workforce than they did in 2011.

For the fourth consecutive time,Californiawas deemed as having the least favorable business climate, with 70.5% of the responses.New Yorkwas named second most frequently with 46.5%, followed byIllinois(24.4%) Taxes, high costs and "anti-business climate/regulation" spurred most of the negative opinions.

The comprehensive survey also asked a series of questions to divine the most effective economic development marketing tools, the leading sources of information that influence executive perceptions of a community's business climate and the most important factors in business location decisions.

DCI conducted the survey online, polling a random selection of C-level executives at U.S. companies with annual revenues of$25 millionor more. The survey was augmented by 250 location advisors/consultants.

Best States for Business

Worst States For Business