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Study from the California Small Business Administration (CalSBA) PDF Print E-mail
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Wednesday, 23 September 2009 07:33

Please read the attached study from the California Small Business Administration (CalSBA), which outlines the cost of state regulation to small businesses (under 500 employees or 99.7 percent of all companies nationwide) here...a whopping $492 BILLION each year...roughly five times the states annual budget.

The study, by two California State University Sacramento professors, is only 32 pages long, but each page is packed with insight to why it is so difficult to get into business in California and even more difficult to stay there.  The back half of the report is devoted to tables showing the ranking of all 50 states, plus the District of Columbia scoring them on the Small Business Survival Index.

Across the nation, California ranked 49th among all states from the friendliest to the least friendly for entrepreneurship, with New Jersey and the District of Columbia the other contenders for dead (and we mean dead) last.

It is important to note that the study is based on data from 2007 and does not include the oppressive costs of the diesel regulations from the California Air Resources Board or the equally destructive costs from the recent actions of the State Water Resources Control Board.

We need to make this study a part of our conversations with government entities--regulators to legislators--at every turn.  Enough is enough and this is too much.

Lee Brown
CDTOA Executive Director

Read Study Document

 
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