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Why Are California’s Businesses Disappearing?

Every now and then, one state governor or another will head to California to pitch businesses on leaving the Golden State. Canada’s immigration chief has been trying his luck, too. The coaxing usually provokes some pundits to bash the state’s high taxes and others to reassure middle-class Californians that employers aren’t planning on jumping ship before the state drifts off into the Pacific Ocean.

Much of the angst about California’s economy has been about jobs and whether employers are picking up stakes and heading for Texas. Bureau of Labor Statistics data compiled by Bloomberg News and published this week don’t answer the jobs question, but they do indicate that California is losing ground in a related category: the number of business establishments.

By Patrick Clark

Full Story: http://www.businessweek.com/articles/2013-07-03/why-are-californias-businesses-disappearing#r=hpt-ls

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