California's Small Business Friendliness Idles at "F"

Date: September 09, 2015

California’s drought conditions appear to apply to its economic climate as well.

When it comes to the state’s small business friendliness, according to a new report, the state scores an “F,” unchanged from its 2014 mark.

That’s according to the fourth annual Small Business Friendliness Survey. It’s a nationwide study of 18,000 small business owners aimed at assessing the state’s economic performance on 11 different metrics, from “ease of starting a business,” for which the state received a “F,” to “zoning, for which the state received an “D+.”

In 2012, the first year of the survey, the state scored a “F” overall. In 2013, that turned into a “D.” This year’s metrics included an “F” for the state’s “regulations,” a “C” for “ease of hiring,” and a “F” for its tax code.

Texas, New Hampshire, Utah, Louisiana, and Colorado owners ranked their states as the most friendly to small business. Meanwhile, joining California, Connecticut, Illinois, and Rhode Island also received “Fs.”

“Small business owners on Thumbtack have consistently told us that they welcome support from their government but are frequently frustrated by unnecessary bureaucratic obstacles,” said Jon Lieber, chief economist of “Given that there is a crisis of entrepreneurship in the United States, seen in the broad collapse of self-employment across industries and states, creating the right environment for business start-ups is more important than ever.”

Related Content: Small Business News | California | Economy

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