California business exodus is accelerating, report says

Golden State-based businesses fled last year twice as fast as in 2020 and 2019, and three times as fast as in 2018, according to a new report from Stanford University’s Hoover Institution.

While moves by big companies like Tesla, Oracle and Hewlett Packard Enterprise to relocate their headquarters (if not their entire businesses) grabbed the headlines, the report found that smaller companies were also increasingly looking to exit.

“California … is risking its economic future as much smaller but rapidly growing unique businesses are leaving with their innovative ideas,” researchers Lee Ohanian and Joseph Vranich said in the report.

“Why are companies leaving? Economics, plain and simple,” Vranich and Oahnian wrote.

“California state and local economic policies have raised the cost of doing business to such high levels that businesses are choosing to forgo many of their economic interests in California and move to a better business environment, less regulation, lower taxes, and a lower standard of living State. Fees.”

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