Premium Essay

California Business

In: Business and Management

Submitted By trojansusc
Words 707
Pages 3
In order to succeed in creating and sustaining a thriving business, many factors are to be considered that affect it. The main factor that can make or break most businesses is simply the place in which the business is located. Finding a correct business climate is a lot harder than it seems. And even once you think your business has been established comfortably somewhere, something in that state may change to where is makes more sense to move business to a different state. This is the case with a lot of businesses today in California trying to relocate to a different state. Location plays into many factors of a business on its own such as the governing laws/taxes in each state, the population, cost of business/living and others. California definitely has a large labor pool, so there is no shortage of employers in need to find more employees. This can be considered an advantage for many businesses in California, but the laws and regulations governing California heavily outweigh many of the advantages it seems to offer. The taxes are punitive, labor laws are punitive and regulations are restrictive. Even many large corporations, such as Toyota, have made the move to relocate their North American headquarters to Texas, which is currently considered to be the number one state for business.
A survey was conducted recently by the well-respected California Business Roundtable where they surveyed more than 1,100 large and small business leaders across California on their view on the state’s jobs and business climate. A few of the highlights found by them are: 62 percent rated California’s economy worse than the rest of the country, 69 percent say it’s harder to do business in California than any other state, and 54 percent of those with companies with operations in other states were more optimistic of the economy versus 39 percent of California only companies.

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