by Chicago, IL – Illinois businesses are facing mounting challenges, with state Rep. Brad Halbrook (R-Shelbyville) warning that the state’s policies continue to create barriers for entrepreneurs and discourage investment.
Halbrook argues that Illinois has become “its own worst enemy” when it comes to creating a clear and welcoming path for new businesses. According to recent U.S. Census Bureau data, only 5.6% of business applications in Illinois convert into operational establishments within the first year. This ranks the state third-lowest in the Midwest and below the national average of 6.1%, despite Illinois scoring near the top in application approvals.
“It’s extremely difficult to start and grow a new business in Illinois because everything that the Democrat majority does leads to higher costs, more regulation and more restriction,” Halbrook told The Center Square.
“We are now the No. 1 property tax state in the nation, No. 2 in gas taxes and the list goes on. Businesses are going to go where there’s less regulation, less taxing and a more ready supply of the workforce, and Illinois is doing everything they can to make it more difficult.”
Business Exodus Accelerates
The state lost 218 businesses to other states in 2023, with the total number of businesses relocating since 1994 reaching 2,616. The pace of business departures has tripled since the start of the COVID-19 pandemic.
Halbrook warns that the challenges may worsen for Illinois companies.
“There’s people that have to live here, whether they’re in the farming business or have a business that just has to stay, but it’s just going to get more difficult,” he said. “Their cost of doing business is going to continue to increase, their margins either shrink or their prices go up, or both. We just have to continue to sound the alarm of how these policies that the Democrats pass every spring and every fall are detrimental to living and working, raising a family and growing a business in the state.”
Regional Comparison
States such as Florida, Tennessee, Texas, and North Carolina are attracting businesses from other states, while California, New York, and Maryland are among the least successful in retaining enterprises. Illinois, according to Halbrook, risks joining the latter group if current policies remain unchanged.
With high taxes, regulatory hurdles, and rising costs, Illinois faces an uphill battle to retain and attract businesses, a trend that could have long-term consequences for the state’s economic growth and workforce development.
