As Benjamin Franklin once wryly noted, “In this world nothing can be said to be certain, except death and taxes.” In the state of California lately, we can add regulation to the certainties that small businesses will encounter as they try to find their financial footing again in these uncertain economic times.
Last week was National Small Business week. It is a time to examine and celebrate the immense contributions entrepreneurs make to our economy. Small businesses remain dodged engines of economic growth, even in these challenging times. According to a recent Small Business Administration report, small businesses surpassed large firms in job creation by 75 percent from 1992 through 2010.
But California’s competitiveness and job climate is handcuffed by the overwhelming amount of regulations already on the books, and faces further erosion from the constant stream of job killing legislative proposals. Small business owners never really know “what’s next?” This uncertainty keeps them from creating more jobs, or moving out of state to avoid the overtly hostile business climate that exists in California.
In early May, Chief Executive Magazine released its annual business climate survey where California ranked dead last due to CEO’s concerns about the high taxes and overregulation. CEO’s repeatedly commented that California’s regulatory climate, high taxes and costs of doing business were to blame. The magazine noted that California was once “the most attractive business climate” but is now in a state of decline. The Los Angeles times reported that 254 California companies “moved some or all of their work and jobs elsewhere –26% more than 2010.”
An entrepreneur opening a car wash needs dozens of permits before he or she can wash a single car. Some of the permits are reasonable health and safety obligations, but requiring separate permits for every aspect of the business, from an underground tank monitoring plan to burglar alarms is costly, time-consuming and counterproductive.
Instead of making it so unwieldy for small business owners – truly the engine of job creation in our state – you would think Lawmakers would either create a single source at the state level to offer comprehensive assistance and guidance to the entrepreneur to streamline the process; and/or eliminate some of the excessive red tape that mummifies job creation and economic expansion. The power of subtracting, not adding to, regulations would provide necessary relief to small businesses.
Nevertheless, no such comprehensive review is on the horizon in our increasingly meddlesome cradle-to-grave Nanny State. Of that, we can be certain.
(George Plescia is the President of Apex Consulting, Inc. Originally posted on Fox & Hounds.)
The “Red” tape is all part of the liberal left wing Govenor Moonbeam. He won’t admit to it, but somewhere in his wallet is a membership card to the American Communist Party.
You have to include the legislature when you point your finger looking for the source of the problem.
Moonbeam could do very little if the Assembly and the Senate didn’t hand it to him on a silver platter.
Our job is to hand him his political head on our own silver platter at the next gubernatorial election. And in the meantime, do the same for those in the legislative branch who are the real problem here in California.
What’s really crazy is the fact that the first people to be thrown under the bus in the communist-socialist scenario are its ‘supporters’, and they foolishly are saying how wonderful life would be after they get their regime.Their top leaders ALWAYS become their greedy dictators and rulers in that scenario. There has never been a successful communist-socialist government.While we still have a semblance of freedom we had better get going and protect it!
Red Tape Chokes California Job Creators http://t.co/2AHleGKi
Let’s start a new business in California. Ha! In order to pay workers, rent, and buy raw materials you need a bank account. But you cn’t open an account without paying the Franchise Tax–$800. OK, now you need something referred to as the “Articles”–$70. Then a Statement of Information–$20, and finally the Certification copy–$7.00. The process started on April 10th. On May 7th a call to the Sec. of State revealed that “we are just opening the mail from mid-March. Give us a couple of more weeks.” On May 23 another call revealed that the application had been sent back. Received on May 29 revealed that the date of incorporation had been left off–needed to be filled in and returned. BUT, I was told that the process would take at least eight weeks as they are just “opening the mail from the first week in April.” They blame it on budget cuts. Seems a strange place to cut a budget.
Thats just the tip of the iceburg how about some Work comp costing $50 + per hundred. In other words for every $100 you spend on a persons paycheck you pay $50 for their work Comp. Unimployment is another, if you supply Health Ins. we live in one of the most expensive states and it coesn’t cover anything and of course there’s the offices that regulate everyone that want a large percentage of your profit. If they raise minimum wage again the minimum wage employee’s will be makeing more than many owners.
well the Dummocraps/Liberal/Socialist/Communist created this “wonderfull business environment”, now lets see what else they do to destroy this State. Then they will call it their “Leap Forward” sound familair?
City, state & federal regulations, taxes, health care costs, liability, and insurance ~ why would anyone want to start a business in California?
YAK,YAK,YAK….And what gets done about it?? NOTHING. As the manufacturing base continues to leave California in droves. It won’t be long until there is NO manufacturing in California. With little income to speak of, the state will dry up as with a bedroom community/state, and unsustainable union contracts that won’t be able to be funded anymore, what happens then? Our farsighted government will have an answer,,yeah it will.
Red Tape Chokes California Job Creators — California Political Review http://t.co/R5i4cfVh
CA put met out of business apply ag pesticides and fertilizer in 1991! As a ground application company I was told to pay $10,000.00 before I could renew my State License! CA Government has been stupid toward small business’ and farming for way too long!
When are people going to wake up and realize the people governing us create more problems so they can keep their jobs and nice benefits? They keep coming up with more jobs for public workers (more regulations means more people regulating) and LESS jobs for the private sector. This is what happens when government gets too big! when are we going to demand smaller government???????
Red Tape Chokes California Job Creators: http://t.co/OJkWDiaF Regs,Taxes,&Penalties Ca. only revenue left. Soon to dry up. Mass Bus.exodus
Red Tape Chokes California Job Creators: http://t.co/OJkWDiaF This along with Cap&Trade Bus. will leave / jobs will end. CA= huge job KILLER
I’ve been self employed since 1985 in four different businesses, none related to the other and sold two of them for a profit. Two I still have in an inactive status. I wouldn’t re-open or start another business in California with my own money for any reason. There’s just no profit after you pay all the government overhead.
Pretty soon all that will be left in Ca. will be Politicians, Unions Members and illegals all living off state taxes but there won’t be anyone left to pay the taxes.
I am the GM for a very large gas station with a carwash, restaurant, repair shop and have propane and an RV dump station. I spend more time on paperwork and paying “FEE’S” which have doubled in the last few years than doing the most important part and that is building my business. CA is terrible about that, I also participate in environmental testing for the state and boy some of those rocket scientists are so smart they are dumb!