California has had a historical pull on establishing success through business growth and expansion in the state. Its key position in terms of national economy has continued to attract both well-established and new organizations to the west coast leader who are looking to tap into commercial success opportunities. It is the location where many of the top businesses we think about today were born out of. Tech giants like Apple, Google, Facebook, and HP as well as organizations who have turned to California after business operations get going. An extensive list of widely known names such as Disney, Oracle, Intel, Chevron, Cisco Systems and the like have moved central headquarters to the top city locations in the state.
What was a magnet for businesses looking to tap into booming industry networks in the state’s top ranking cities is now starting to take a back seat to other states doing things differently. ”The topic of affordability has always been one that puts California behind other untapped locations that do not exceed the average median income required of today’s populations to sustain an middle to upper class lifestyle when living in the state.” shares entrepreneur Marcus Hiles who has established a thriving property development firm in one of California’s main competition, Texas. Being too centralized is another factor the state is facing, diversity is a big focus in today’s organizations who want to ensure they are tapping into new talent, resources and commercial networks that aren’t already operating in a crowded space.
There is also another category causing businesses to think twice about placing their investment projects in the state of California – regulatory requirements. Known for its strict guidelines and regulations across areas of development, consumer products and environmental restraints; the state has made it harder in some areas to sustain growth depending on the industry companies are operating in. Development rates reflect this by showing low levels of spend on economic development when compared to other areas like Texas who has made expansion a key strategy across the state.
Because of this fact, California is losing out on the competitive advantage it once owned over other locations that now have not only affordability in their corner but also a means to successfully foster developmental growth at a fast pace.
Whether or not perception or fact, businesses have picked up on the sense that California as a whole is an area that takes a significant amount of time and resources to get established in. ”Despite offering some of the best in industry opportunities, access to talent and commercial infrastructure in its existing businesses, entrepreneurs are moving away from California to other states because it takes too much money and time to locate business operations there.” shares Marcus Hiles, predominant Texas based property developer who has experienced the influx of both businesses and residents transplanting from California.
Though the economic model California is emulating is one of conscious development, which many argue is a positive change from the usual rapid, unregulated expansion we have come to accept in other locations; until other states follow the same guidelines it is no question the state’s economy will experience negative impacts.