Business Climate

Virginia boasts one of the best business climates in the country thanks to our supply of talented workers, strong education system, high quality of life, and overall business-friendly environment. In fact, Virginia recently ranked as the top state for business according to CNBC for the second year in a row – the first state to manage back-to-back top state rankings since the award began. We are proud of this recognition and the other rankings that reflect Virginia’s position as a great place to do business. These recognitions are the result of commitments to the business-friendly policies that Blueprint Virginia has consistently called for since its inception in 2013.

For Virginia to be a global leader in commerce and position itself for long-term success, the Commonwealth must address vulnerabilities in its business climate. Virginia can strengthen its entrepreneurial environment by decreasing the cost of doing business in the state; improving the legal, tax, and regulatory environment; and investing in infrastructure assets essential to our economic progress. If the Commonwealth does not address these critical areas, we risk relinquishing our business-friendly status and dropping in national business rankings.

The recommendations here provide the Commonwealth with a set of foundational business principles to create an economy for all.

  • Provide leadership and a unified business voice for long-term strategic planning regarding business climate and economic development in the Commonwealth and work with our public and private partners to further these goals
  • Encourage regional collaboration regarding economic development through the Growth and Opportunity Board of Virginia (GO Virginia), the GO Virginia Foundation, economic development organizations, and other economic development groups to grow Virginia’s target industry sectors on regional, cross-regional, and statewide levels
    • Advance cross-regional collaborations, also known as mega-regions, that work to advance economic prosperity across geographic boundaries through partnerships and shared goals
    • Target technology (e.g. data centers, emerging technology, cybersecurity, data science, machine learning), transportation and logistics, high growth advanced manufacturing, biotechnology and life sciences, and business services and operations sectors for growth and investment
  • Coordinate Virginia’s educational and workforce development system’s focus on in-demand industry sectors to ensure that needed skills for the workforce of today and tomorrow are developed through new skill building, as well as upskilling and reskilling of the existing workforce
  • Invest in economic development marketing, expand broadband coverage, strengthen regions’ inventory of shovel-ready sites,  and support sector and regionally-specific talent development initiatives
  • Expand and support initiatives that can bring previously outsourced jobs to rural communities in Virginia, such as CGI’s “onshoring” model in Lebanon, VA
  • Incentivize business attraction for communities through targeted tax and regulatory changes, such as reducing the state and local tax burdens for capital-intensive manufacturing projects and easing start-up regulations
  • Continue to support growth in Virginia’s agriculture sector, including related manufacturing, forestry, and agritourism opportunities
  • Certify a community’s readiness for economic development and create an initiative to enhance their ability to recruit economic development projects
  • Build and support strong civic and business leadership throughout Virginia
  • Support investments in Opportunity Zones to encourage and coordinate greater, more impactful investment in expanding employment opportunities
  • Expand incentives for employment in Federal Work Opportunity Zones to encourage broader employment growth in disadvantaged communities that face consistent barriers to employment
  • Support additional funding to fulfill existing and future commitments for the revitalization of distressed areas through existing and future Enterprise Zones
  • Address economic, educational, and employment opportunity gaps for underrepresented and disadvantaged communities through intentional and meaningful strategies
    • Seek to understand why these gaps exist and analyze approaches to address them
    • Promote greater employment opportunities through long-term workforce development programs that target underrepresented and disadvantaged populations
    • Encourage entry-level job opportunities that can lead to advancement and provide experience for all skill levels
    • Improve minority networks through greater access to work-based learning opportunities like internships and apprenticeships
    • Improve access to capital for minority-owned businesses through a review of existing barriers and targeted improvements
    • Expand entrepreneurial education that provides the tools and advisory services needed for more minority businesses to launch and succeed
    • Promote positive employment outcomes for people with disabilities by encouraging employers and others to recognize the value and talents they bring to the workplace and implement flexible and inclusive workplace practices
  • Work with the Blueprint Virginia 2030 Military and Veterans Affairs Executive Committee to address the needs of veterans and transitioning service members and their families for greater employment opportunities
  • Create economic and employment opportunities for previously incarcerated individuals and remove barriers to allow them to more easily become workers for in-demand jobs
    • Improve job training and educational opportunities for the incarcerated through programs like “Ready to Work” that enable skill building and workforce development which can improve rehabilitation and re-entry to society, and reduce recidivism
    • Develop workforce training partnerships in Virginia’s correctional system with businesses to deliver skills needed in the marketplace
    • Reform occupational licensing restrictions at the state level in order to narrowly target any license restrictions and provide a means to recognize rehabilitation
    • Create a system of immunity for employers from causes of action related to negligent hiring to encourage the hiring of individuals with criminal records, also known as “second chance hiring”

  • Champion Virginia’s right to work law as the cornerstone of the Commonwealth’s pro-business and pro-economic growth policies and resist efforts which undercut employee choice
  • Enact targeted legal reforms, defend our legal climate, and promote positive features of Virginia’s business climate and civil justice system 
  • Ensure state and local regulatory programs are consistent and compatible to limit additional burdens on business in complying with a patchwork of local requirements
  • Maintain Virginia’s primacy in federally delegated regulatory programs such as environmental permitting and workplace safety 
  • Ensure an efficient and balanced unemployment and workers’ compensation system and support improvement in the agency’s ability to process valid claims and identify fraudulent ones
  • Restore financial solvency to the unemployment insurance trust fund
  • Allow for the sharing of thought leadership and business best practices to inform government process improvement
  • Support an efficient, consistent, and effective immigration system that provides certainty to employers
  • Implement strategies that reward high-performing state employees and constructively address underperformance
  • Enhance the relationship between state government, local government, school systems, and other partners to support cost-effective performance and delivery of services
  • Ensure that the Commonwealth sufficiently funds its “rainy day” fund to ensure Virginia maintains its positive credit rating

  • Work with the Governor and General Assembly on a comprehensive review of Virginia’s tax system that better positions the Commonwealth for economic growth and investment, such as, but not limited to:
    • Conduct a full review of the competitiveness of Virginia’s corporate tax burden in comparison to peer states
    • Reduce the tax burden on capital intensive manufacturing
    • Modernize Business, Professional, and Occupational Licensure (BPOL) taxation to limit the burden on professional services and other industry partners
    • Ensure Virginia’s state and local tax officials maintain a fair and balanced approach to treatment of Virginia’s business community

  • Utilize data-informed, business-driven, decision-making for statewide, regional, and local economic competitiveness and workforce priorities
  • Maintain the partnership among the Virginia Economic Development Partnership (VEDP), the Virginia Chamber’s Business Climate Executive Committee, and other relevant stakeholders on the National Rankings Initiative which seeks to further improve Virginia’s position on national rankings of business climate in comparison to other states
  • Market Virginia for economic development opportunities to site selectors and corporate leaders through robust advertising, branding, lead generation, and site consultant cultivation
  • Prioritize a client-focused and responsive system of streamlined incentives for economic development that attract investment and job growth while allowing the flexibility to meet the needs of private sector growth and fulfill existing incentive commitments
  • Strengthen and evaluate Virginia’s portfolio of economic development incentives, and clearly communicate the return on investment of this spending
    • Improve support for Virginia’s incentive programs and other business attraction assets such as the Commonwealth Opportunity Fund (COF), Virginia Investment Performance Grant (VIP), the Virginia Talent Accelerator Program, Agriculture and Forestry Industries Development Fund (AFID), the Port Volume Increase Tax Credit, among others
  • Position Virginia to secure transformational economic development projects that attract positive national attention, create jobs, result in significant capital investment, and add to the Commonwealth’s quality of life
  • Retain our existing workforce and employers and work to secure their expansion in the Commonwealth
  • Strengthen Virginia’s inventory of strategic, project-ready sites
    • Prioritize a significant state investment in building out more Tier 4 and Tier 5 shovel-ready, greenfield sites to catch up with competitor states to attract opportunities from the growing domestic advanced manufacturing industry including necessary infrastructure to support these sites; and ongoing investments to maintain and expand the Commonwealth’s full portfolio of sites
    • Support public-private financing models as an approach to enhancing Virginia’s economic development sites and buildings
    • Support and encourage opportunities for the “re-shoring” of industry to help address current and future supply chain issues providing reliability and resiliency to business

  • Nurture a culture of innovation and entrepreneurship that values and encourages new business formation and small business growth in Virginia
  • Remove barriers that currently impede small business growth, such as conflicting regulatory standards, excessive licensure and registration requirements, and uneven taxation across locality, region, and sector
  • Promote development of entrepreneurial ecosystems surrounding Virginia’s research universities that facilitate business startups and commercialization of new discoveries
  • Provide community resources for small and growing businesses like business incubators, shared workspaces, and other resources that allow for the acceleration of small business growth with a distinct focus on economic inclusiveness
  • Leverage Virginia’s Business One Stop portal as a resource for small businesses to plan, develop, and expand their business
  • Increase access to capital and provide additional financing options for small businesses and entrepreneurs, which is one of their largest barriers for growth
  • Promote the creation of regional private and community investment funds and support existing and the launch of additional sector-specific accelerators

  • Fully fund and implement Virginia’s International Trade Plan which seeks to increase Virginia’s exports by 50 percent by 2035
    • Expand the capacity of state agencies to build capabilities, facilitate connections, and share risk with Virginia firms that export
    • Increase focus of state agencies to build capabilities and facilitate connections for firms that import critical elements of their supply chains
    • Align business expansion and recruitment activity with international trade efforts
    • Advocate for critical investments in logistics, infrastructure, and tourism strategies
    • Enhance the Commonwealth’s ability to serve Virginia businesses through increased coordination among agencies and federal stakeholders
    • Continue investments in the Port of Virginia and other transportation assets to maintain the state’s competitive advantages
    • Work to further increase agricultural and forestry exports from the Commonwealth and seek to expand their value-add production
  • Recognize the important role international trade plays in Virginia’s largest industries in every region of the Commonwealth, such as agriculture and forestry, and other export intensive sectors

  • Build on Virginia’s strong reputation as a high-quality and safe state to live, work, and raise a family
  • Support efforts that improve quality of life standards such as access to well-paying jobs, high-quality health care, child care, affordable housing, and a world-class education system
  • Nurture vibrant tourism, hospitality, and travel industries to attract visitors and new Virginians
    • Create and support public and private investments in vibrant communities, hotels, attractions, and other tourism-related facilities, so that people will choose to live, work, invest, and vacation in Virginia
    • Promote efforts and state infrastructure to attract new and repeat visitors to Virginia while growing the state’s revenue and tax base
  • Support the protection, continued development and funding of Virginia’s state parks and trails for the benefit of all Virginians and our economy
  • Capitalize on opportunities to make the Commonwealth more attractive for professional sports franchises, amateur sporting events, travel, and entertainment
  • Develop and advance intercultural and global competence frameworks to entice and improve international trade opportunities
  • Support development and communication at the local level of global economic engagement across the Commonwealth of Virginia

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Focus Area:

Workforce &
Education
Business
Climate
Infrastructure
Health Care &
Life Sciences
Innovation &
Technology
Advanced
Manufacturing
Energy
Housing
Corporate Sustainability & Environment
Military & Veterans Affairs
Safety, Preparedness & Resiliency