California's Regulatory Environment Not Positive for Small Business

Date: December 15, 2015

When it comes to regulations, California’s small business could use a break.  

“The regulatory burden in California continues to grow,” said Dr. Wayne Winegarden, the report’s author. “Minimum wage increases—which simultaneously raise costs on businesses and harms many low-wage workers and consumers—have passed in Los Angeles and San Francisco. California is also pursuing regulations that would reduce the viability of Uber and Lyft, the popular ride-for-hire services revolutionizing how people commute. These regulations are just two of California’s many regulatory diktats that are burdening the state economy.”

The regulatory burden in California continues to grow. Minimum wage increases—which simultaneously raise costs on businesses and harms many low-wage workers and consumers—have passed in Los Angeles and San Francisco. California is also pursuing regulations that would reduce the viability of Uber and Lyft, the popular ride-for-hire services revolutionizing how people commute. These regulations are just two of California’s many regulatory diktats that are burdening the state economy.

According to a new report,  “The 50-State Small Business Regulation Index,” California’s regulations for small business owners rank No. 50 in the nation.

Released by the San Francisco-based Pacific Research Institute, the study examined 14 different variables, from unemployment insurance taxes to minimum wage laws.

“The purpose of the small business index is to create a benchmark that allows the comparison of regulatory burdens and to provide insights on how each state can enact pro-growth reforms,” said Winegarden.

The state ranked in the bottom 10 states, which included:

Bottom States:

41. New York

42. Washington

43. Hawaii

44. Oregon

45. Maine

46. Vermont

47. Connecticut

48. Rhode Island

49. New Jersey

50. California

At the top, states with the most small business-friendly environments included:

1. Indiana

2. North Dakota

3. Texas

4. Kansas

5. Georgia

6. Virginia

7. Mississippi/South Dakota

9. Florida

10. Missouri


Related Content: Small Business News | California | Economy

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