As unrest once again disrupts parts of Los Angeles, many small business owners are asking a painful question: should we leave California?
For some, the answer is yes. But for a growing number, the real problem is they can’t.
According to a February 2024 survey of 80,000 small business owners by PublicSquare and RedBalloon, only 13% of California small businesses say they’re happy with their current location — nearly 40% lower than the national average. Nationally, almost half (47.7%) of business owners report being satisfied and having no plans to relocate.
In California, however, 67% say they are either planning a move (10%), considering one (30%), or feel stuck — wanting to move but unable to afford it (27%).
“Nearly a third of small businesses feel they’re stuck in Hotel California, where they can check out anytime they like, but they can never leave,” said RedBalloon CEO Andrew Crapuchettes. “California used to be the engine of small businesses in America, but those still California dreaming are finding it’s become a nightmare – 67% want to escape.”
The reasons behind this discontent are no mystery. Among California business owners, 86.4% cite high taxes as a driving factor, while 84.9% blame anti-business government policies. Nationally, these same issues rank high, but not nearly to the same extent — 64.5% and 59.4%, respectively.
Still, as businesses clean up broken glass and rebuild yet again, relocation is often a luxury. Many can’t sell their property at a decent price, relocate employees, or find affordable alternatives elsewhere. For the 27% who say they feel “trapped,” economic and logistical realities outweigh the dream of a more business-friendly home.
And so, many stay — not because they want to, but because they have to.
The weather may still be nice, but for California’s small business owners, the climate is anything but.
