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.
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.
The business climate in California is improving. A new report shows the state ranks high when it comes to new business development and small business growth.
The report looked at three major indicators of business in California.
“Job creation and also the creation of new businesses and the expansion of old businesses.”
Next 10 founder Noel Perry helped author the report’s and the numbers show “California has above average and better in job creation and also in creating new businesses.”
A new study finds that California isn’t nearly as hostile to business as its reputation would suggest.
In fact, the state ranks near the top in several key economic measures, such as net job creation and the rate of startups. This is a big deal for two reasons: New businesses create far more jobs than old ones, and California’s high ranking comes despite its onerous costs for taxes, land, energy and other key inputs.