CALIFORNIA: Here is an Approach
While the majority of small businesses would recommend their geographic location to others,
they also say their local government could do much more to support them. Seven out of 10
businesses responding to the latest Ouch Point survey from Opinion Research Corporation
say tax breaks would be the most effective measure, followed by “cutting red tape.”

“The majority of small businesses are looking to their local governments to help them succeed –
with tax cuts, fewer regulations and better marketing,” said Rebecca Elmore-Yalch, Senior Vice
President, Opinion Research Corporation. “At the same time, most municipalities are strapped,
with declining revenues and increasing demand for services. One solution may be to focus on
reducing red-tape to support businesses without adding new strains to local budgets. These
businesses just want to see that local government is on their side.” Survey results pointed to a
few lower-cost options. When asked what government action would be most helpful, keeping
businesses better informed topped the list (56 percent). Reducing the number of regulations
followed closely (55 percent). Despite the challenges many businesses are facing today, most
are satisfied with their location. Nearly three quarters (72 percent) would recommend their city to
other businesses. The greatest support came from the largest companies ($750,000 to $2+ million
in sales), with backing from four out of five respondents. When asked to identify the primary business
advantage of their location, local customer loyalty and location were at the top of the list, with
22 percent each.

Interesting trends also emerged by comparing responses across the four regions of the United States.
Among the highlights:

 - Business owners in the Midwest cite customer loyalty (31 percent) as the most important advantage,
compared to just 16 percent of those in the South and 19 percent in the West.

- One-third of business owners in the West cite location as the primary advantage, compared to just
16 percent in the Midwest and 19 percent in the Northeast.

- 62 percent of business owners in the Northeast think that their local government could do a better job
of promoting their town, compared to 44 percent of those in the West.

- The South is the only region in which a majority of business owners (53 percent) indicated that improving
the quality of the work force would be most effective. By comparison, only 38 percent of those in the West
agree.

- Nearly a third (30 percent) of business owners in the West say that they would definitely not or probably
not recommend their town to someone looking to start or relocate a business. By contrast, more than
three-quarters (78 percent) of those in the South would probably or definitely recommend their town.

- In the Midwest, 75 percent rank tax breaks as their highest priority, compared to the West at 64 percent.

"The majority of small businesses are looking to their local governments to help them succeed, with
tax cuts, fewer regulations and better marketing," says Rebecca Elmore-Yalch, Senior Vice President,
Opinion Research Corporation. "At the same time, most municipalities are strapped, with declining
revenues and increasing demand for services. One solution may be to focus on reducing red tape to
support businesses without adding new strains to local budgets. These businesses just want to see
that local government is on their side."

"Local governments can do a lot to facilitate entrepreneurial growth by helping to create conditions and
 policies that make it easier for small businesses to succeed," Yalch added.

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