*Provided by the Economic Development Colloborative
For many in California, it has become accepted as truth, that the California business climate—defined by escalating costs and challenges owing to high taxation and regulation—is driving a mass exodus of business from the state. Given the recent lack of growth in our local economy, it’s an easy story to believe.
But what if the data doesn’t support the story on businesses migrating out of the state? What if it turns out that our local economy in fact benefits from more businesses moving in than moving out?
At EDC, we’ve done the research, and that’s exactly what we found for our central coast region. The business exodus story is not supported by the data. For our central coast counties, we
actually, gain on net from business migration, that is, from the total movement of businesses into and out of the region. We further found that the net economic value of the businesses that arrive— as defined by sales and employment—exceeds the value of the firms that leave.
Click here to read the full report.