Un-Investable: Breaking It Down

It may be a tough message, but some states are more business friendly than others. ?As a site selector, I know this.?Please don’t shoot the messenger.

It was interesting to hear recently that Kevin O'Leary went on the record with CNN stating directly that some states have become “un-investable”. ?After reading some of the social media surrounding his comments, it was clear that “un-investable” needed to be defined from a site selector’s perspective.?Of course, as Mr. O’Leary stated, there is an absolute battle of the states happening right now – and it’s a battle for new investment and jobs.?

Un-investable refers to a state or location that is considered unfavorable for businesses to invest due to factors like high taxes, lack of incentives, and/or poor regulatory environment. Essentially, it means that the overall conditions of the location are not conducive to business growth and success, making it an unattractive option for companies looking to invest or expand their operations.

When it comes to investment decisions, companies evaluate a range of factors before deciding where to allocate their resources, meaning invest, establish, or grow a business location.

Firstly, businesses want to operate in places where they can maximize their profits. If a state has high taxes, it can be difficult for businesses to stay competitive. This is especially true for industries with thin margins.

Next, incentives are a crucial tool for attracting businesses; particularly if a state’s tax climate or workforce is not as robust as other states. If a state doesn't offer any incentives or has limited options, companies may choose to invest elsewhere.

Lastly, a poor regulatory environment can make or break investor confidence. If the rules and regulations are overly stringent or unclear, then it can be difficult for companies to navigate the system. This can result in delays, higher costs, and overall frustration for businesses. Companies need to be able to navigate the regulatory environment smoothly to succeed.

All these factors can contribute to making a state un-investable for companies. Tax and incentives are just a piece of the puzzle, but they are certainly important considerations.

Ultimately, companies need to weigh all factors and determine which state offers the best environment for their industry and business model, which is why hiring a professional site selector makes a lot of sense.