Despite the profusion of tech startups and computer giants that placed the San Francisco bay area at the forefront of technological innovation, Forbes magazine, in its most recent list of the best states for business, paid no favoritism to the Golden State's history - ranking it all the way down at No. 39.
The list's rankings were devised based on a number of qualifications including business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. In each grouping California ranked relatively low, reaching the 25th percentile in only two categories: quality of life (No. 22) and growth prospects (No. 11).
California still maintains, by far, the country's largest state gross domestic product of $1.5 trillion. But the rankings highlight the state's growing budgetary and regulatory hurdles that make launching an LLC in California particularly difficult.
This November, the state will vote on a number of controversial propositions - the most debated of which includes an initiative to suspend a law requiring utilities to acquire one-third of their energy from renewable sources by 2020 until unemployment drops to 5.5 percent. It is argued that repealing this law will adversely affect California's leading green tech industry.
Meanwhile, the Texas Public Policy Foundation released a report showing how Texas is beating out the Golden State in almost all economic categories. This latest Forbes survey seems to agree.
Tags : ca, operations, small business management
Posted: Oct 14th, 2010