Recent survey names Ill. ‘bad for business’

By Ryan Felgenhauer

Some NIU professors disagree with a recent survey naming Illinois as a poor state for businesses.

The survey, released by Development Counsellors International of New York, lists Illinois below California and New York on its least favorable business climate rankings list.

According to the survey, of the 322 executives surveyed, about 24 percent named Illinois as the worst, citing taxes and regulation as their main complaints.

NIU business professors said there are several reasons Illinois might be considered bad for business.

Regulation is often a problem, as it inhibits a business from acting as they choose, said Marc Simpson, Department of Finance chair.

Other potential problems include corruption and taxation. Illinois recently significantly raised taxes for businesses, Simpson said.

The state may also lack the certainty business leaders need when making decisions.

“It is unclear how the state will solve its fiscal policy,” said Sarah Marsh, Department of Management chair. “Business leaders would prefer things were solved.”

Despite these issues, several NIU professors said they believe Illinois is no worse for business than any other state.

“People confuse Illinois being pro-worker with being anti-business,” said marketing professor Geoffrey Gordon.

Gordon said Illinois’ business tax rate is not extremely high compared to other states.

“Our tax is still in line with other states,” Gordon said. “Businesses will not be dissuaded from that.”

Other states have problems of their own as well, Gordon said.

“South Dakota is trying to take businesses from Illinois,” Gordon said. “But their work force is not as educated.”

Illinois is not the only state facing financial uncertainty.

“The U.S. government has fiscal issues of its own,” Marsh said. “You can’t pin all of the uncertainty on Illinois.”

The state also has advantages other states lack.

“Illinois has a high quality workforce and a good geographical location: in the center of the country as a transportation hub,” Simpson said.

Marsh said the motivations of those who took the survey should also be considered.

Business students might seek employment elsewhere due to belief that Illinois is a bad state for business.

“Unless perceptions changes, graduates might need to relocate,” Simpson said. “However, there will always be the need for people who can navigate the regulations in a particular area.”

Marsh said she didn’t believe it will have any effect.

“NIU graduates are just as likely to work in Illinois as anywhere else,” Marsh said.