low-staffed, if not understaffed, public services, as well as right-to-work laws, an obstacle to unionization.” Indeed, when another researcher in the field measured the ALEC rankings for all 50 states against their economic growth, he found that, if anything, a higher index score correlates with a “worse economic performance.” Why California? The question remains: Is California a good place to start or run a business? According to Business Finance Capital (BFC), a Los Angeles-based Small Business Administration Certified Development Company, the answer is a resounding yes. In fact, 99.98% of California businesses are categorized as small businesses, and they make up an impressive 48.8% of the state’s workforce. As BFC points out, California ranks No. 1 in terms of innovation and technology, as well as access to business capital. The company cites four specific reasons why California provides such a favorable climate for small business: Large population – California hosts a substantial pool of workers, a diverse customer base, and ready access to a wide professional network of business partners (lawyers, consultants, accountants, etc.). Diverse and productive economy – From 2012 to 2022, for example, the state’s Gross Domestic Product (GDP) grew at an annualized rate of 2.4%. That GDP spells low unemployment and greater disposable income, which leads to more sales and greater profitability. Business resources – California’s abundant business-focused resources and programs are among
the nation’s most robust network of organizations dedicated to aiding small-business development. Strong infrastructure – The state’s transportations systems, access to broadband and other digital services, and investment in capital assets that support core state functions (state office buildings, fire and emergency services and courts) all provide small businesses a valuable framework for running efficiently and competitively. The business of air quality Beyond these critical, business-centered advantages, though, some of the state’s most controversial—and often criticized—policies and practices are precisely
those that offer businesses of all sizes a more favorable climate in which to operate. State air-quality laws and legislation—a hot-button issue for the pros and cons of California business performance—offer a prime case in point. There’s no question that California has long been a leader in innovative air-quality policy in the U.S. The state’s unique geography,
California ranks No. 1 in terms of innovation and technology, as well as access to business capital. BUSINESS FINANCE CAPITAL
weather and population greatly impact air quality and the subsequent regulations put into place to protect it. But critics of the state’s anti-pollution policies are quick to condemn them as “burdensome” to business. Much of that criticism tends to overlook how undesirable the state would be if it didn’t enforce strict air-quality regulations. In fact, California’s long history of commitment to climate and air-quality management
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