California’s small-business owners are facing numerous challenges that are pushing them to consider better opportunities elsewhere. High taxes and crime rates are the main factors contributing to their dissatisfaction and desire to relocate.
A recent survey conducted by PublicSquare and RedBalloon revealed that 67 percent of California businesses are unhappy operating in the state. Of this percentage, 30 percent are actively considering a move, 27 percent want to move but can’t afford it, and 10 percent are in the planning stages of relocating. This dissatisfaction is significantly higher than the national average, with only 13 percent of small-business owners in California reporting happiness with their location.
High taxes were identified as the primary reason for wanting to relocate, with 86.4 percent of respondents citing taxes as a major hindrance to their profits. Additionally, 85 percent expressed frustration with anti-business government policies. In comparison, on a national level, 64.5 percent of employers were concerned about high taxes, and 59.4 percent were dissatisfied with anti-business government policies.
Armitage Winery, a family-owned business in Scotts Valley, California, is one of the many businesses considering a move. The increasing costs of taxes, insurance, labor, and the government’s unfavorable attitude towards businesses have made it difficult for them to continue operating in their exclusive location. Kelly Bradford, the vice president of sales for Armitage Winery, mentioned that they are looking into options in Oregon, Idaho, and Arizona, where land, taxes, and labor costs are more affordable.
The impact of high costs and taxes is also evident in the wine industry. Armitage Winery has experienced a decline in customers due to the added expense of taxes and fees. Many wine club members have cited financial reasons for discontinuing their purchases. Despite suggestions to increase their price point, Armitage Winery aims to maintain its current pricing to cater to middle and upper middle-class consumers.
Andrew Crapuchettes, the CEO of RedBalloon and a former resident of the San Francisco Bay area, emphasized the importance of local public schools in determining business owners’ location preferences. In Florida, where business owners seem to be content, 75 percent of respondents expressed happiness with their location. In contrast, more than 75 percent of California business owners mentioned “woke public schools” as a reason for wanting to leave. The impact of schools on the future workforce and the overall business climate cannot be overlooked.
Crime rates have also played a significant role in the dissatisfaction among small-business owners in California. Nearly 60 percent of respondents reported a significant increase in crime over the past year. Comparing red and blue states, the survey highlighted that 76 percent of those doing business in red states were content, while just over 25 percent of business owners in blue states expressed happiness.
Cherie and Curtis Falwell, owners of Bulletproof Pet Products, have been operating their business in Brentwood, California, for the past decade. However, they are considering relocating to Nevada due to the high costs and taxes that make it challenging for a small business to thrive. The decline in the quality of life, including rising crime rates and homelessness, has further reinforced their decision to leave.
Scott Fuller, owner of LeavingTheBayArea.com, is an example of a California business owner who has successfully relocated to find more affordable housing and a better quality of life. His consulting firm now helps other San Francisco Bay area residents explore similar opportunities in other states.
The survey results indicate that the challenges faced by small-business owners in California are leading to a significant desire for better opportunities elsewhere. High taxes, anti-business government policies, crime rates, and declining quality of life are key factors driving this sentiment. As businesses consider relocation to states with more favorable conditions, it remains to be seen how California will address these concerns and retain its small-business community.
