California, long derided as a state with an unfriendly business climate, is getting better in some respects, according to a new survey by the non-partisan group Next 10.
The Next 10 report, prepared by Beacon Economics, rated California fifth in establishment entry rates for new businesses, fourth in job creation rates from new firm growth and fourth total net job creation. California also had the 10th highest entry rate of small businesses with one to four employees, with small firms representing 19.1 percent of new enterprises.
The report found California is creating jobs faster than the national average and had a strong environment for job creation in both new and existing businesses.
It credits the state’s diverse economy that supports a number of vibrant sectors like electronics, life sciences and agriculture for the rating.
The Next 10 report relied on U.S. Census Bureau’s Business Dynamic Statistics to calculate its rankings of the state.
Still there are areas where the state struggles. The Tax Foundation ranked California No. 48 out of 50 states based on business tax rates.