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Sep 20 2011

California # 1 on Worst Business Climate List Again

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Most Californians admit it is hard to do business in the state and Texas Governor Rick Perry often comes to California to recruit businesses for Texas. Some have readily left the state.

Why?

A poor business climate.

California may have beautiful weather and incredibly interesting, diverse climates, but trying to run a business in this state is another matter. “Climate” is a matter of perspective.

A new business survey of the best and worst states for business has been published by Development Counselors International. Surprising no one, the survey reveals that California was most frequently named by business leaders as the worst state in the country to start or operate a business.

Having the least favorable business climate, California was the state named most frequently by respondents as business-unfriendly. This is the fourth consecutive time that California has received “least favorable business climate” top billing in since the company first started doing the survey.

Respondents provided understandable reasons for their negative opinions of California. The state was cited for having very high taxes by 40 percent of respondents, while 36 percent mention too much regulation, 23 percent said that California has high business costs, and 17 percent identified the anti-business climate.

Texas, North Carolina, South Carolina, Tennessee and Florida were the top favorable business climate vote getters for the 2011 survey. Reasons cited were a more favorable tax climate, having a pro-business climate, being a right-to-work-state, having a strong and talented workforce, and economic development support. Interestingly, four of the five pro-business states are in the Southeast.

California’s economy is not going to improve unless the California Legislature and Governor change up the business climate in a BIG way. Then, they can start working on the housing market.

Here is a chart of the survey over time:

California having a poor business climate has been a long time in the making and we are all paying the price today.
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