Maryland's Overall Business Climate
Companies were surveyed on their perception of the overall business climate in Maryland, the advantages and disadvantages associated with doing business in Maryland, the steps that they believe are necessary to improve the State’s business climate, and their likelihood of remaining in Maryland.
Maryland’s Business Climate
Companies were asked to rate Maryland’s business climate as pro-business, business friendly, neutral, unfriendly, or anti-business.
-
Overall firms had a positive view of Maryland’s business climate with 51 percent reporting that Maryland’s business environment is pro-business or business friendly and only 16 percent Maryland as being either unfriendly to business or anti-business;
-
This is a significant improvement over 2011, when only 30 percent reported Maryland as being either pro-business or business friendly and 35 percent reported Maryland as being either unfriendly to business or anti-business; and
-
Firms in Baltimore City have the least positive view of Maryland’s business climate (42 percent pro-business or business friendly and 20 percent unfriendly to business or anti-business) and firms in the Washington Suburbs have the most positive view (59 percent and 12 percent respectively).
Advantages to Doing Business in Maryland
Companies were asked to name the most important advantage of doing business in Maryland.
-
Fifty-six percent of firms reported Maryland’s location as its most important advantage. In particular, Maryland’s proximity to the federal government and overall customer base is the greatest advantage to doing business in the state;
-
Nine percent of firms cited Maryland’s labor market as its greatest advantage;
-
Seven percent of firms cited Maryland’s business environment as its greatest advantage; and
-
Seven percent of firms cited Maryland’s strong local market as its greatest advantage.
Disadvantages to Doing Business in Maryland
Companies were also asked to identify the most important disadvantage to doing business in the State.
-
Thirty nine percent of responding firms reported taxes to be the greatest disadvantage to doing business in Maryland. This is down slightly from 42% in 2011;
-
Seventeen percent of businesses cited Maryland’s business environment, which included costs associated with doing business, the business climate, government attitudes towards business, and government agency inefficiency, as being the most important disadvantage to doing business in Maryland; and
-
Thirteen percent of firms stated that regulations are the most important disadvantage to doing business in Maryland.
Steps to Improve Maryland’s Business Climate
Companies were asked to provide the single most important step that can be taken to improve Maryland’s business climate going forward.
-
Forty percent of firms cited reducing or reforming lowering taxes as the single most important step that can be taken to improve the State’s business climate;
-
Sixteen percent of firms stated that improving or lessening regulations is the most important step to improve the business climate; and
-
Fourteen percent of firms reported that expanding or investing in economic development efforts, such as assisting/promoting small business and expanding business incentives, as the most important step to improve Maryland’s business climate.
Business Retention
In an effort to assess the threats of firm’s risk of relocating out of state, firms were asked if they planned on remaining in Maryland or if they were planning on leaving, where they would relocate to and why.
-
Ninety-eight percent of firms responded that they would be remaining in Maryland (Very Likely of Just Likely) – 2 percent of firms (24 businesses) reported that it is unlikely or very unlikely they will remain in Maryland;
-
Of the 24 of firms that responded that they may be relocating, sixteen firms identified the state they are considering moving to, with four each responding Virginia and Florida, three to Pennsylvania, two to Tennessee, and one each to Delaware, North Carolina and Texas; and
-
When asked why these firms would be relocating, four firms cited tax reasons and two each responded business climate, cost of living or business opportunities as the reason.
Table 6: How would you rate Maryland's overall business climate? (Q17)
Table 7: What would you say is the single most important advantage of doing business in Maryland? (Q15)
Table 8: What would you say is the single most important disadvantage of doing business in Maryland? (Q16)
Table 9: What would you say is the single most important step that could be taken to
improve Maryland's business climate? (Q18)
Table 10a: Looking ahead, how likely do you think it is that your business will remain in Maryland? (Q39)
Table 10b Location/Reasons for Relocation
