Dreaming of a Startup? California Gets an F in Small Business 101

Dreaming of a Startup? California Gets an F in Small Business 101EXPAND
File photo by Anne Fishbein/L.A. Weekly

Do you have dreams of launching your own food truck? Maybe it'll serve up some ingenious fusion of Asian and Mexican cuisine that has yet to be invented?

California is the place for you. Or maybe not.

A new report from Thumbtack, a hiring marketplace for professionals, says the Golden State is one of the worst in the nation for small businesses. California ranked as the "third least friendly state" in America.

"The state's skilled professionals were most concerned about tax and labor regulations," the site stated.

The fifth annual Thumbtack Small Business Friendliness Survey asked 12,000 U.S. respondents for their thoughts about how government policy affects their small businesses.

"Disappointing grades for tax regulations and labor regulations drove an F overall for California," a Thumbtack spokesman said.

In fact, the Golden State saw an F in eight categories: overall friendliness; ease of starting a business; regulations; health and safety; employment, labor and hiring; tax code; licensing; and environmental regulations and zoning.

Our highest grade, B-, was for training and networking programs.

Slightly more than half of respondents in California said taxes were too high. Only Alabama (the worst) and New York (the next worst) outdid us for poor business climates, according to the survey.

Texas, Utah, Tennessee, Georgia and Colorado were the top states for small businesses, according to Thumbtack.

Keep in mind, however, that this is a survey about business owners' perceptions. California now has the sixth largest economy in the world.

Sour grapes come with this land of plentiful vines. The cover charge is high. But it's the place to be.

Dreaming of a Startup? California Gets an F in Small Business 101

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