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California Losing Businesses at Highest Rate in the Nation

By July 19, 2011

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California, like so many other metropolitan areas, lost thousands of jobs between 2008 and 2009, according to the most recent U.S. Census reports. In fact, says Jan Norman, small business columnist for the Orange County Register, California lost more than 21,000 business, more losses than any other state in the country.

Orange County is not untouched by these business and job losses, with a 2.4 percent contraction of its business base. Since 2008, 69 businesses have moved out of California, including two OC manufacturers, MVM Technologies and refrigerator maker Kairak.

And the losses keep going. Monday, Cisco Systems announced plans to lay-off almost 10 percent of its work force, including 60 employees in the Irvine office working on the soon to be discontinued Flip camera.

There are lots of reasons sited for this exodus of businesses in California, including high crime and tax rates, an unfair regulatory burden and unfriendly business climate.

What do you think this trend of business losses means for California?

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