Forbes site ranks Va. No. 1 state for business

Virginia is the best place for business in the United States, according to a ranking by Forbes.com.

Gov. Timothy M. Kaine said the first-place ranking means the state is "on the right track to lead the way."

"Today I reaffirm our pledge to continue working in a bipartisan way with our legislature to build on Virginia's reputation as a national leader," the governor said in a statement Wednesday.

This is the first year Forbes.com has looked at the best state for business. The study took into account the costs of business, labor issues, regulatory and economic climates, growth prospects, and the quality of life in the state.

According to the Forbes.com Web site, Virginia ranked in the top 10 of all six categories, something no other state did. North Carolina finished third.

Since 1999, the Web site has ranked the best large and small metropolitan areas for business. This year, Hampton Roads ranked 48th, behind the Richmond area, 41st.

The designation of being No. 1 in the country is not just a bragging right, it has serious business implications, said Christie Miller, spokeswoman for the Virginia Economic Development Partnership.

"In the business world, it's like getting the Good Housekeeping seal of approval," Miller said. "Forbes is a household name, and to get this from them is tremendous."

Tara F. Saunders, deputy director of the Portsmouth department of economic development, said the ranking "lends credibility to what we've been saying for years."

"We spend so much time meeting with prospective companies outside of the state and sometimes across the world," she said. "We spend 50 percent of the time trying to convince people that Virginia has a business-friendly atmosphere. The other 50 percent of the time we try to convince them that Portsmouth or Hampton Roads is the place they want to be within Virginia."

This study reflects favorably on the state's assets, such as its ports and the ability to ship or receive from around the world, said Gary L. Whaley, acting dean of the business school at Norfolk State University. "Once we've been identified, businesses will look at us and consider moving here," he said. "Virginia and Hampton Roads have everything working for it."

Another asset, said Sen. John H. Chichester, R-Northumberland and president pro tempore of the state Senate, is the strength of the state's people.

"They are well-educated, forward-thinking and when combined with a government that looks to the future, it isn't surprising that Virginia is so honored by this award."