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Follow on Google News | LA County Businesses Decry Unfriendly Business ClimateAnnual survey suggests increasingly pessimistic business outlook
By: BizFed The latest BizFed annual BizPOLL survey of members finds that only 52% believe business conditions this year will be better than last – down nine points from last year’s poll. When it comes to hiring new workers, the survey found that just 30% plan to grow their workforce this year – down from 34% who felt that way the same time last year. While, 48% said they plan to invest in durable goods this year, compared to 33% who said that last year, 92% say that it’s too difficult to access capital to make those investments. The results come as - for the third year in a row - taxes and fees and government regulation top the BizFed survey as members’ highest-priority concerns. Open-ended comments on the survey included numerous concerns about the slow and confusing bureaucracy businesses – including small “mom and pop” businesses – must navigate to receive permits, pay fees, and ensure compliance with seemingly ever-changing local rules and regulations. “Businesses in Los Angeles are treading water, and instead of throwing them a lifeline, government officials have continued to weigh them down with taxes, fees, and regulations,” “Businesses are adapting to long-term stagnation,” Notable among the results is the general perception that LA County is unfriendly to business. Sixty percent of survey respondents identified the City of Los Angeles as the “least business friendly city” in the region. However, El Segundo, Long Beach, Burbank, and Glendale were most frequently cited among the "most business friendly." Despite 76% of businesses surveyed being anchored in LA County, 80% say they have no plans to expand or grow in the county, and 9% actually plan to leave the county. High taxes and excessive regulations were the most common reasons cited for businesses either not expanding in or planning to leave LA County. “This survey should be a wakeup call,” said Tracy Rafter, BizFed CEO. “Sacramento and Washington have been touting a series of positive economic indicators, from revenue increases to unemployment moving in the right direction. But the reality on the ground for thousands of businesses throughout Southern California is very different.” The BizFed Survey Found: Top 5 Priority Issues: No. 1: Taxes and Fees No. 2: Government Regulations/ No. 3: Health Care No. 4: Education No. 5: Legislative Gridlock (State and/or Federal) Employment and growth are stagnant 30% plan to hire this year, compared to 34% last year 16% plan layoffs this year, the same as 16% last year 48% plan to invest in durable goods this year, compared to 33% last year But 92% perceive access to capital as still a challenge Businesses that call LA County "home" are treading water for yet another year 76% are anchored to the region 80% have no plans to expand in LA County 9% are planning to leave LA County 2011, 2012, 2013: “taxes & fees” ranked 1 and “regulations” “Length of time to get permits” “Bloated bureaucracy/ “High taxes” "Health Care" identified as a Top 5 issue, driven by concern/uncertainty over health care reform BizFed believes this year’s survey results are a clarion call to electeds at all levels to work cooperatively, across party lines, to advance reforms, coupled with responsible fiscal policies and programs that recognize business as a critical cornerstone for the state’s economic recovery. “After the May election, we have an important opportunity to change course,” said Fleming. “Business is so used to being hammered by taxes, fees, and regulations that it has become the new normal, resulting in stagnation. It doesn’t have to be this way.” INTERVIEWS AVAILABLE BizFed member organizations across LA County are available for interviews; see attached list of BizFed members. In addition, these BizFed members are available immediately for interviews: · David Fleming, BizFed Founding Chair, david.fleming@ · Joe Ahn, BizFed Polling Committee Co-Chair, South Bay Association of Chambers Commerce, Joseph.ahn@ngc.com, (310) 812-5312 · Lisa Bailey, BizFed Polling Committee Co-Chair, Irwindale Chamber of Commerce, lisa@irwindalechamber.org, (626) 960-6606 · Don St. Clair, BizFed Chair-Elect, Woodbury University, Don.StClair@ · Hugo Merida, BizFed International Trade Committee Co-Chair, Los Angeles Metropolitan Hispanic Chamber of Commerce, hmerida@chamberla.org · Will Wright, BizFed Land Use Committee Co-Chair, American Institute of Architects – Los Angeles, will@aialosangeles.org, (213) 639-0764 · Jose Cornejo, BizFed Member, California Public Strategies, jose@capublicstrategies.com, (818) 486-3322 · John Cruikshank, BizFed Member Harbor Association of Industry & Commerce, jcruikshank@ · Tracy Rafter, BizFed CEO, trafter@bizfed.org, (818) 429-0462 Methodology: End
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