“Doing business in California is expensive and getting worse every year.”
– Caterer, Irvine
San Francisco, CA, 8/5/2014: Thumbtack.com, in partnership with the Ewing Marion Kauffman Foundation, today released new data showing that Anaheim earned some of the lowest grades in the nation for its friendliness towards small businesses and its unfriendly regulations.
More than 12,000 entrepreneurs nationwide participated in this year’s survey. The Thumbtack.com Small Business Friendliness Survey is the largest survey of its kind and is the only survey to obtain data from an extensive, nationwide sample of small business owners themselves to determine the most business-friendly locations.
While there are various “business climate rankings” that rate locations as good or bad for business, there are no others that draw upon considerable data from small business owners themselves. This year our team was able to rate 82 cities and most states across multiple metrics that business owners say are critical to a friendly business environment.
“After a two-month survey of thousands of small business owners nationwide, the data show that Anaheim earns low marks for its friendliness towards small business,” said Jon Lieber, Chief Economist of Thumbtack.com. “Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, and Anaheim has a ways to go towards this goal.”
Some of the key findings for Anaheim – and California generally – include:
Anaheim earned a grade of D+ for its overall friendliness to small business.
Small business owners gave Anaheim’s regulations a grade of D; it did especially poorly in labor laws and health and safety regulations.
Anaheim’s training and networking programs earned a C-.
All cities in California – except Oakland – rated poorly: Oakland (B-), San Francisco (C-), San Jose (D+), Santa Rosa (D), Riverside (D), Los Angeles (D), Oxnard (F), San Diego (F), and Sacramento was named the least friendly city in the country, earning an F.
California earned an F grade for its friendliness towards small business, and was the third least friendly state in the country.
“It is critical to the economic health of every city and state to create an entrepreneur-friendly environment,” said Dane Stangler, vice president of Research and Policy at the Kauffman Foundation. “Policymakers put themselves in the best position to encourage sustainable growth and long-term prosperity by listening to the voices of small business owners themselves.”
The full survey results can be seen here and include full sets of rankings for cities and states going back three years, along with dozens of easily searchable quotes from Anaheim small businesses.
“Now matter what people say about doing business in California, it’s still the best place to live and work if you are a business owner. The customer base is just plain huge here. I have never seen a client that knew the laws of his or her business that couldn’t make it here if they were smart about money and when and how to spend it or not spend it.”
– Accountant, Yorba Linda
Thumbtack.com surveyed 12,632 small businesses across the United States. The survey asked questions about the friendliness of states towards small business and about small business finances, such as:
“In general, how would you rate your state’s support of small business owners?”
“Would you discourage or encourage someone from starting a new business in your state?” and
“Do you think you pay your fair share of taxes?”
Thumbtack.com and the Kauffman Foundation evaluated states and cities against one another along multiple metrics. The full methodology paper can be found here.
Headquartered in San Francisco, Thumbtack is a consumer service that helps millions of people accomplish the personal projects that are central to their lives. Thumbtack introduces customers to experienced professionals who are available, interested and qualified to meet their specific needs. Whether looking for a painter for their home,a math tutor for their child, or a DJ for their wedding, Thumbtack provides anyone in the U.S. with an easy and dependable way to get started, compare options, and hire with confidence. The company has raised a total of $49 million from Sequoia Capital, Tiger Global Management, Javelin Venture Partners, and other prominent investors.