The largest city in Arkansas coaxes talent and investment with aggressive tax breaks and some of the most affordable housing among state capitals. In fact, Little Rock ranks Top 3 when it comes to attracting and retaining Fortune 500 companies. Chalk it up to southern hospitality, but a combination of business friendly taxes and competitive incentives helps as well. A powerful and diverse corporate presence distinguishes Arkansas’s capital city, situated on the banks of the state’s namesake river that will likely surprise many people unfamiliar with this southern city—more proof that city officials have sharpened their pencils on the economic development front. Dillard’s Department Stores, Windstream Communications and Acxiom are just a few of the national and multinational corporations headquartered in a city that has in the past suffered from an undeserved reputation as the capital of an underdeveloped state known mostly for the Ozark Mountains and other wilderness, and also as the place where former president Bill Clinton cut his political teeth.