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Silicon Valley isn’t the only place in California making headlines with new business growth. A recent report from the Los Angeles Business Journal announced that the Los Angeles-Orange County region leads the nation in startups. According to studies from the Economic Innovation Group, the LA-Long Beach-Anaheim metropolitan areas generated an annual average of 21,870 business startups between 2010 and 2014, the largest number of any metro region in the nation.
This list will show you why entrepreneurs are setting roots here. Despite its expenses, California is actually one of the most underrated states to incorporate in, and statistics prove that it offers up plenty of great entrepreneurial opportunities for one and all.
We’ve gathered all of the reasons why it’s the perfect time to open up shop on the West Coast and start a small business in California.
Last year, the U.S. Small Business Administration (SBA) approved more than $5 billion in small business loans for California companies. This kind of financial largesse enabled entrepreneurs to start companies, maintain existing companies with new facilities and equipment, create jobs by hiring more employees, and grow the overall state’s economy.
With 12 months of economic development promised for 2017, the SBA is making it easier than ever for Californian entrepreneurs to learn about the loan and financing process and get it underway. Their website, for instance, has implemented new technology to streamline the loan process and get small business owners the capital that they need.
Additionally, entrepreneurs seeking financing will hear back from local lenders much faster. After visiting the SBA website and answering 12 questions about their company, they can expect to be contacted within 48 hours.
Whether you’re craving the tech vibe of Silicon Valley or would rather incorporate by the beach, there’s a city that’s the perfect fit for every entrepreneur. From Northern to Southern California, some popular favorites with major incentives include the following areas:
There are a few downsides here—namely traffic and high leasing/rent costs—but having a thriving population spells good things for the longevity of a small business. California has a high number of businesses per capita—9 companies for every 100 residents—which bodes well since the state has the largest population in the United States.
Tying in with the above mention about the perks of living in a bustling area, the state has been steadily reducing its unemployment rate while simultaneously growing its labor force. According to the Bureau of Economic Analysis, the annual growth rate of California matched the nation’s at 3% from 2009 to 2013.
Calling all entrepreneurs still on the fence about incorporating in California! The SBA has revealed that new lending initiatives will be tested in 2017 including Partnerships for Lending in Underserved Markets (PLUM). A joint initiative from the SBA and Milken Institute, PLUM will help identify and implement recommendations to increase lending to underserved markets and provide minority-owned small businesses with an enhanced capital access.
From an ever-growing robust economy to funding access for everyone, the startup future in California is so bright that entrepreneurs (understandably) have to wear shades. If you think you’re ready to start-up in California, be sure to check out the IRS checklist for starting a small business so you’re prepped and ready to go from the beginning.