The survey, published by the Development Counsellors International marketing firm, revealed that behind California and ahead of Illinois, 46.5 percent of respondents voted New York the second worst state for doing business.

According to Dariel Curren, the vice president of DCI, the study randomly selected U.S. companies with annual revenues of $25 million or more and surveyed their corporate executives. According to the study, 61 percent of responders cited taxes as the main reasons for finding New York an unpleasant state to do business in. 38 percent said costs.

The survey also showed that Texas, North Carolina, and Florida were among the best states in which to conduct business.

“New York is a state with relatively high taxes, high costs and lots of regulation, [and] businesses generally would prefer less of all [these] things,” Lawrence White, a Stern professor of economics, said. “California, like New York, is also a state with high taxes, high costs and lots of regulation. Texas is a low-tax, low-cost and low-regulation state.”

Robert Lillpopp, a spokesperson for the Business Council of New York State, said he agreed with the survey’s findings.

“[The survey] is very accurate, because [it uses] common tax rates and compares taxes in other states,” he said. “There are a number of surveys and studies that list New York as the worst or second worst state to do business in.” Lillpopp cited the “The Public Policy Institute of New York State” as one of these studies.

So, the question remains: How can New York improve its business climate?

“The important thing is for all governmental efforts to be conscious of the need to take a cost-benefit approach to any changes in policy and to be conscious that New York cannot rest on its laurels,” White said.

According to Lillpopp, lowering taxes would help and added the government needs to ease up on regulations.

“Everyone says we need to cut the red tape,” he said.

Some small business owners, like Abid Syed, the owner of Curry and Tandoor Corner, have had to close their stores.

In the past three years, Syed has opened several restaurants. All but one have closed down.

“There is too much competition very high rent and the city is always looking for fines,” he said. “Right now, we have no future and we will maybe close down because of too much expenses.”

But White said that there are some advantages for doing businesses in New York, including an educated population, good telecommunication and a robust marketplace.

“It is all of these advantages that allow New York to impose some of the taxes, regulations [and] costs, and not drive all of the businesses out of the state,” he said.