California's bureaucratic and regulatory framework has been the point of criticism among many business leaders and free market advocates, even prompting Texas Governor Rick Perry to send letters to various Golden State businesses imploring them to relocate.
Now, a survey released this week by Small Business California may deliver one of the most potent examples of the state's dangerous position. According to the report, 21 percent of surveyed small business owners do not expect to be operating in California three years from now.
"I think taxes, regulations, access to capital and the feeling of a hostile business climate all contributed," Small Business California President Scott Hague told the Orange County Register.
Meanwhile, a separate Zoomerang survey recently found 70 percent of respondents believe things in California are headed in the wrong direction.
To add to businesses' troubles is the state's looming $28 billion budget deficit, which lawmakers have proposed to address through a series of tax hikes that may further discourage investors and entrepreneurs looking to incorporate in California.
"You can't do business in California on a low profit margin business model, because the cost of real estate disallows that," David Boldt, a businessman who recently moved to Texas, told KETK-56 News in Dallas.
Tags : ca, incorporation, operations, small business management
Posted: Mar 8th, 2011