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Survey: Red Tape Behind Small Business Exodus From California

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(credit: David McNew/Getty Images)

(credit: David McNew/Getty Images)

LOS ANGELES (CBS) — More local small business owners are having doubts about staying in California.

A survey taken by Small Business California (SBC) finds over 20 percent of respondents do no expect to be doing business in the state within the next three years.

KNX 1070’s Ron Kilgore reports the oppressive regulatory climate and ever-expanding “red tape” are among the more popular reasons owners have cited for leaving.

Many also pointed to more business-friendly climates in other states like Nevada, Arizona, and Texas offering better “ease of communication, travel and shipping”.

SBC president Scott Hague says the high number of business expected to close or leave the state is “frightening”.

Hague says most small companies can’t afford to leave, but many large firms have found it difficult to turn down states with better tax incentives and cheaper cost of doing business.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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