California is one of the best states to do business in the United States according to The Los Angeles Business Journal, the state has the most startups in America. Between 2010 and 2014 alone, LA generated about 21,870 startups annually. Today, that number has increased exponentially.
As a businessperson dealing with resale, it all begins with obtaining the California seller’s permit. Why invest in CA?
- High Economic Recovery
Over the years, there has been a steady reduction in unemployment rate in California. The state’s labor forces have been snowballing. According to a report from the Bureau of Economic Analysis, California has an annual growth rate of 3% between 2000 and 2017. By 2020, California’s economic growth is expected to outshine the rest of the nation.
- Lending Initiatives
Recently, the American Small Business Administration (SBA) revealed that lending initiatives such as Partnerships for Lending in Underserved Markets (PLUM) were tested in 2017. The Milken Institute, PLUM, and SBA formed a joint initiative to help lenders to implement various strategies to boost lending to most underserved markets.
Also, the initiative provides minority-owned enterprises with extra capital. Entrepreneurs intending to set up businesses in California can check different lending initiatives.
- California’s Economic Growth
Last year, SBA approved small enterprise loans worth over $5 billion for California firms. The loans helped investors start new firms, hire more employees, grow the economy and maintain established companies.
SBA promoted steady economic development for one year. It offers numerous opportunities for Californian investors to learn financing, loan process and how to start. For instance, SBA applies a new technology which streamlines the financing process to provide small business operators with the necessary capital.
Moreover, use of technology shortens the time taken for an entrepreneur to get funds from a local lender.
- Numerous Cities to Start Businesses
California has several cities that fit different investors. You can start your venture at a beach or in the Silicon Valley. Some famous cities with vital incentives include:
- Irvine: Has the Orange County Small Business Development Centre which offers excellent training and consulting to small businesses.
- San Francisco: Suitable for technology-based enterprises. It has an array of venture capitalists to fund your new application. The Bay Area is ideal for small businesses.
- Santa Monica: Also nicknamed the Silicon Beach, Santa Monica has more than 23,000 small enterprises. Women own close to 32% of these ventures.
- High Population
Although California has high rent costs and traffic congestion, its high population offers a ready market for local products and services. It has a business per capita of nine firms for 100 residents.
Besides having a robust economy, California has a bright future for start-ups. If you intend to start an enterprise selling tangible goods, it’s essential to get a California seller’s permit. Call FastFilings for filing and license requests.