Survey: Sacramento Gets 'Failing Grade' for Small Business Climate

Survey: Sacramento Gets 'Failing Grade' for Small Business Climate

A new survey ranks Sacramento the worst city in the country for small business owners. Six other cities in California, out of 82 cities nationwide included in the survey, ranked among the least business-friendly in the country.

The Times of San Diego reports that the new survey from Thumbtack, a San Francisco-based online hiring service, shows that the state of California received failing grades in “business, environmental regulations, and for its tax code, licensing, and zoning laws.” Thumbtack surveyed 12,000 small businesses nationwide over a period of two months.

“After a two-month survey 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 toward small business,” Jon Lieber, Thumbtack’s chief economist, explained in a statement about the survey’s findings. “Creating a business climate that is welcome 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,” he added.

Aside from Sacramento’s last-place finish, five other California cities ranked among the least business-friendly in the nation: San Jose came in at 68; Santa Rosa in at number 70; Riverside in at 71; Los Angeles in at 74; and Oxnard came in at 76.

The survey also revealed what small business owners say are the most important factors in an advantageous business climate.

“Thousands of small business owners across the country told us that the keys to a pro-growth environment are ease of compliance with tax and regulatory systems and helpful training programs,” Lieber said.

Other states joining California for the dubious distinction of fostering the least friendly business climate include Rhode Island, Connecticut, Illinois, and New Jersey. The best states to open a small business include Texas, Utah, Idaho, Virginia, and Louisiana.