Why are businesses leaving California?

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There are a number of businesses that have left California in recent years looking for something better. But why are businesses looking to leave California? One of the main reasons that has been cited is high operating costs.

A variety of businesses have left California in the last few years, but there are still many which are also looking to move to the region as well, thousands have made that choice in the last few decades for example.

But for the many that are looking to leave or who have left already they've pointed to the operating costs as one of the major driving factors that prompted them to consider it.

It was too expensive to do business in the state so they looked to set up shop somewhere else.

In 2021 it has been reported that over 100 companies left their locations around the state and looked to go elsewhere. Cannabis companies in the region know about this situation all too well and they've struggled severely with some of the rules and operating costs that pepper their industry. Despite that though the cannabis market in CA is still thriving and one of the biggest in the world.

Where are companies leaving to?

  • Texas
  • Nevada
  • Tennessee
  • Florida
  • Arizona

Some of them might not be going that far, for the choices of where they end up it seems there are a few favorite regions.

Those listed above, such as Arizona and Texas for example, have been among the favorite locations for companies to settle with.

It's clear to see what draws businesses to be interested in settling in a certain area and it isn't difficult to assume why operating costs might play a major role.

Pics:
pixabay
Sources:
https://www.cbsnews.com/sacramento/news/more-california-companies-moving-out-of-state-than-ever/
https://ktla.com/news/california/californias-business-cost-remains-expensive-new-study-says/

Why are businesses leaving California? | Ecency