News Summary
Maryland is struggling to maintain its business attractiveness, currently ranked 35th by CEOs and business leaders. With rising tax burdens and low rankings in business friendliness, concerns grow over job creation and economic growth. Political leaders emphasize the need for strategic reforms to enhance Maryland’s business environment, as a projected $3 billion budget shortfall looms. The state ranks low in job opportunities and must learn from other states to foster economic competitiveness.
Maryland Faces Challenges in Business Environment As Rankings Decline
Baltimore — Maryland is experiencing difficulties in attracting and maintaining a strong business reputation, according to recent surveys and rankings. The state is currently ranked 35th in terms of business attractiveness based on a comprehensive annual survey conducted among CEOs and business leaders. Additionally, a separate publication’s survey, which assesses various factors including labor access and infrastructure across 14 subcategories, did not place Maryland among the top 20 states for business friendliness.
State Rankings and Comparative Performance
Maryland’s performance in national rankings highlights its struggles compared to other states. Nine states—Texas, Tennessee, North Carolina, Georgia, Indiana, Virginia, Arizona, Ohio, and South Carolina—achieved top 15 rankings in both surveys, indicating stronger business environments and more favorable conditions for economic growth. Maryland’s relatively poor positioning raises concerns about its ability to attract new businesses and retain existing ones, which is essential for the well-being of its residents and for maintaining a healthy fiscal situation.
Impact on Residents and State Economy
The ability of a state to attract and keep businesses directly influences employment opportunities, tax revenues, and overall economic health. When a state ranks lower in business attractiveness, it can lead to slower job creation, less economic activity, and potential fiscal challenges. Maryland faces such issues, demonstrated by a $3 billion budget shortfall, which signals underlying weaknesses in its fiscal health. Ensuring a robust business climate is critical for addressing these financial concerns and fostering economic growth.
Political and Historical Context
Governor Wes Moore recently emphasized during the 2025 State of the State address the importance of engaging more Marylanders in a growing economy. This call for action reflects ongoing efforts to improve economic conditions. Historically, the state’s former governor, Larry Hogan, criticized Maryland’s business environment in his 2015 address, noting that unfavorable conditions contributed to the departure of businesses from the state. These political statements underscore the long-standing challenges Maryland faces in fostering a competitive business environment.
Economic Indicators and Rankings
Despite difficulties, Maryland shows some economic strengths. In 2023, the state ranked 15th in per-person gross domestic product (GDP) and 3rd in median household income. However, Maryland’s overall economic growth rate from 2015 to 2023 placed it at 36th among the 50 states. Moreover, population growth over the period from 2020 to 2024 is estimated at 32nd position nationally, indicating moderate demographic growth.
Tax and Business Environment Metrics
On the fiscal front, Maryland’s ranking in tax competitiveness presents a more concerning picture. The Tax Foundation’s 2025 State Tax Competitiveness Index ranks Maryland at 46th, suggesting high tax burdens that may deter business investment. Similarly, WalletHub’s evaluation lists Maryland as 46th out of 50 states in terms of the best and worst states to start a business. These rankings reflect the state’s perceived disadvantages for entrepreneurs and existing business owners alike.
Job Opportunities and Resident Sentiment
Additional indicators include a ranking by MyPerfectResume, which places Maryland at 34th in job opportunities, a measure of how well the state provides employment options for residents. Social scientists’ theories suggest that dissatisfaction with a state’s economic and business environment may lead residents to “exit” or consider leaving, rather than using their voice or remaining loyal. Such departures could exacerbate existing economic and demographic challenges if not addressed.
Looking Forward: Learning and Improving
In response to these challenges, experts advocate for Maryland to focus on innovating and learning from other states that excel in business attraction and retention. Improving perceptions of its business climate through new ideas and policy adjustments could help elevate Maryland’s rankings and foster sustainable economic growth.
Summary
Maryland’s current rankings highlight ongoing struggles with its business environment. Despite some economic strengths, rankings related to tax burdens, business friendliness, and growth potential indicate room for improvement. The state’s leaders and stakeholders recognize these issues and emphasize the need for strategic reforms to bolster the state’s economic competitiveness and ensure a thriving future for its residents.
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Additional Resources
- The Baltimore Sun: Maryland Business Reputation
- Insurance Business: Progressive Insurance Sues Maryland Towing Company
- BizReport: Best Maryland Registered Agent
- Wikipedia: Business Environment
- CNET: Maryland Solar Panels
- Google Search: Maryland Business Environment
Author: STAFF HERE BALTIMORE WRITER
The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
