There is a fierce debate about whether or not California is business friendly. Those who believe California is bad for business usually point to our state’s high tax rates and regulations. Those who say California is good for business note that our GDP is the eighth largest in the world, and say we are established as a global center of innovation with the world’s largest tech firms.
Despite California’s reputation as not being business friendly due to its higher tax structure, a study that examined other trends showed the state is still a good place to do business.
The study found the state is attractive for creating and sustaining successful businesses, and also that California is creating jobs faster than the national average.
While many of those new jobs are created by existing businesses, many are also coming from new firms, according to the report.
A new analysis shows California ranks high in the rate of job creation compared to other states.
The report, "California New Business Creation," was written by Beacon Economics for the nonprofit, nonpartisan group Next 10, which is based in San Francisco.
Next 10 founder Noel Perry says the analysis uses 2013 U.S. Census data to show California's "business climate" compares well to other states.
Contradicting an entrenched narrative that California is a bad place to start or expand a business, a new report sets out to make a case that the Golden State is a national leader in job creation.
The California New Business Creation study uses 2013 U.S. Census Bureau data to show that the state ranks fourth in the nation for job creation and fifth for the creation of new businesses. It comes from Next10, a San Francisco-based pro-renewable energy group, and Beacon Economics, a Los Angeles economic consulting firm.
Despite red tape, high taxes and a burdensome cost of living, California is still deemed to be a good place to do business, and the San Jose region is the nation's best-performing major metro area, according to separate reports released Wednesday.
In one report, prepared by Beacon Economics for nonprofit group Next 10, a comprehensive look at California's business climate determined that the Golden State is considerably more hospitable to business than suggested by conventional wisdom that sometimes elevates less costly states such as Texas.