Skip to comments.California: CEOs Rate It Worst U.S. Business Climate For 8 Years Running
Posted on 03/21/2014 7:02:37 AM PDT by SeekAndFind
California's economy continues to experience a tepid recovery since the Great Recession. One reason why: according to CEO Magazine, California has had the worst business climate in the nation for the last eight years, due in no small part to policies out of Sacramento.
Any economic growth in the Golden State is largely driven from the continued tech boom in Silicon Valley - although even it may not be immune to California's poor business climate. Depending on how one categorizes "small businesses"- typically, either fewer than either 50 or 100 employees - as of the 3rd quarter of 2012, between 96% and 98% of all businesses in California were "small." At the fewer-than-100-employees classification, small businesses employed 55% of California's total workforce. As such, how California's business climate affects small businesses has big consequences for growth prospects.
Earlier this month, advocacy group Small Business California released its annual survey of small business executives. While most reports noted a renewed economic optimism among executives, a more granular look at the survey's results suggest otherwise.
Roughly half of the executives surveyed believe California is heading in the wrong direction (even worse than Californians on a whole as recorded in the Hoover Institution's January Golden State Poll). This view is likely driven by the fact that, by a four-to-one margin, small business executives say the "business climate in California" is either very poor or poor, while a whopping 64% say the "business climate for small businesses" is such.
(Excerpt) Read more at realclearmarkets.com ...
Obviously, people still want to be there, otherwise the price of housing in that area would not be the most expensive in America...
Who wants to be treated like a criminal entity, taxed to death, follow inane rules and regulations pulled out of some Greener’s a$$, and has to hire illegal aliens for its workforce?
Nobody in their right mind, that’s who
[you may quibble with ‘has to hire’ but I submit if your local government affords all the rights and privileges of citizenship to illegal aliens, then your workforce must necessarily consist of such because you have no recourse to weed them out of the process]
I’m opening an office in Phoenix. Much better climate.
They open an office in the Valley because of the work force already there. Those that dont care about costs.
RE: Im opening an office in Phoenix. Much better climate.
I hope you factored in the air conditioning expenses.... :)
Did the article mention that California has a democrat supermajority and democrat governor?
Well Im hiring locals so I assume they are used to it. Plus office rents are pretty low there.
Horrible business climate and this state has IMO gone only down hill in the last 3 decades.
You may have a successful blip somewhere or in government employment dominant cities, but that is all IMO.
naa. it’s a sweat shop ;)
A segment of the workforce seems to still be doing pretty well while the average salaried are finding it increasingly difficult to survive and are moving out in droves.
How can this be when they have more than enough illegal aliens to do the work Americans won’t do?
We had been in SoCal for twenty years. Then 5 years ago my husband’s company closed up shop and moved to Arizona. I sure miss the beauty, the weather, the activities of California. But we are managing much better with our finances here. Yes, our electric bills are higher in the summer months, but that is the only thing that is more expensive.
DemocRat = anti-business.
“...the average salaried are finding it increasingly difficult to survive and are moving out in droves.”
Do NOT come to Texas if you are like the snotty Californians who arrive to use our advantageous economy while telling us how things are done in CA. We don’t want to hear any advice from people who screwed up their state so badly that they could no longer live there.
But yet certain types of big businesses are thriving in CA.
Consider the mystery tenant in San Jose that just leased 2 million square feet. Plus every big name name tech story recently (last 10 years) is there: Twitter, Linked-In, Facebook, Google. Facebook was founded in Boston, but HAD to locate its HQ in Silicon Valley.
As predicted, the polarization continues. The very rich and very poor thrive, the middle escapes to NV and AZ.
“If California’s business climate is so bad, what accounts for the continued hiring in Silicon Valley?”
If you own/control a dot.com entity like Google, Facebook, Intel, ____________ fill in the blank, more than likely you are a devout liberal. So you don’t mind having Moonbeam as your governor, liberal mayors, city council members and local rats, you control at the Sacramento. In fact you donate huge sums to elect and reelect the above rats.
Also, you are rich enough to live in closed gate communities, so you don’t have to worry about crime from the unemployed. Or you own a 15,000 square foot mansion on a hill top within helicopter range for your commute above the common travelers packed into an old dirty BART car, AC Transit bus or on one of the limited size expressways, which become bottlenecks twice a day.
You are against the second amendment, yet you have armed guards to protect you and your family. Your children go to expensive private k-12 schools with armed guards or police officers on the premises.
You have a vast number of vicious left wing lawyers to deal with the petty laws. You have lobbyists to grease your skids. You or your spouse donates big sums to illegals, druggies or some other bottomless pit demanding more $’s each day. This makes the local pols even more dependent on you and your $’s.
Your company has box seats for the Giants, Sharks, Warriors and other sporting events.
Your children, when they become college age will be welcomed to Stanford or the Ivy League school of their choice because of your donations.
In the meantime, you live in a place that has some of the best weather in the world.
If you or your significant other get bored or tired of this area, you can charter a plane to vacation in a private/protected villa, most of us could only dream about or see in a movie.
The terrible California anti business rules apply to the small business owners and out of state controlled/owned businesses.
Last but not least, the politicians, you own at the city/county/state level will make it next to impossible for a real competitor to open a business in California. Then, you can continue to charge outrageous prices to your cults that wait for your product like druggies needing a fix.
business climate? perhaps. but 117F temps make the other kind of climate problematic, at least for me.
“How can this be when they have more than enough illegal aliens to do the work Americans wont do?”
I wonder if Intel crowd sources with enough illegal aliens if Intel can get the i9 processor chip designed that way?
but its a dry heat
“Yes, our electric bills are higher in the summer months, but that is the only thing that is more expensive.”
Look into evaporation cooling and see if that is appropriate for your situation. Only cost is to run a 3/4 horse motor and an aquarium-sized pump and a few gallons of water a day.
Works great in Colorado for me and we’re not a dry as you.
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