Study: California Horrible for Small Businesses

According to a survey by Thumbtack, a website that matches customers to businesses, and the Kauffman Foundation, a think tank, California has been rated one of the least friendly states in the U.S. for small businesses. The study was based on data gleaned from over 12,000 small business owners across the nation.

Jon Lieber, Chief Economist of Thumbtack, said:

After a two-month survey of thousands of small business owners nationwide, California's small businesses have rated it near the bottom as one of the least friendly states in the nation towards small business. Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, and California continues to receive low marks from its small businesses for creating this kind of environment.

California received terrible grades from the study, including:

  1. An “F” for its friendliness towards small business, joining only Illinois, Rhode Island, Vermont, and Maine to get a failing grade.
  2. An “F” for its labor, health and safety, and environmental regulations.
  3. A “D” for its tax code, licensing, and zoning laws.

In addition, seven of the worst cities in the country for small businesses are in California; of the 82 that were rated, San Jose was #68, Santa Rosa #70, Riverside #71, Los Angeles #74, Oxnard #76, San Diego #78, and Sacramento hit the bottom at #82.


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