Report Cites Five Steps to Keep Businesses from Leaving California

Although California is the world’s fifth largest economy, “the Golden State’s luster appears tarnished in recent years,” according to a report from the Los Angeles Area Chamber of Commerce and the Inland Empire Economic Partnership. It noted “a seemingly endless stream of firms” leaving the state and a slowdown in population growth relative to other states.  

Titled “California’s Competitiveness: A Regional Approach,” the report makes five key recommendations to attract and retain businesses. They include the following: 

• Develop an economic strategy that capitalizes on regional expertise by identifying industry hubs across the state. 

• Develop partnerships between higher education and industry that promote occupational skill upgrading to satisfy the demand for talent and skills from the local industry clusters that are interconnected with the rest of the world.  

• Define business attraction and retention strategies at the regional level that drive innovation in leading regional clusters and are supported by a statewide plan.  

• Address the state’s high cost of living and ensure that community amenities are on par with those in other states.  

• Build entrepreneurial infrastructure and support that will attract new firms while also lowering the barriers to entrepreneurship for its homegrown talent.