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Survey: California Small Businesses Growing in Optimism
Published on Mar 25, 2011
Read 'Survey: California Small Businesses Growing in Optimism' at 'Time to Start Up,' the small business blog by BizFilings.
As the country's largest state economy and home to one of the most important hubs of technology and innovation in the world, Silicon Valley, California - as well as its economic rival Texas - is sometimes viewed as an indication of nationwide economic standing.
The state's budget deficit and unemployment situation are among the worst in the country, and a recent Equifax report found California accounted for nearly 20 percent of all small business bankruptcies in 2010.
However, optimism among the state's small businesses may be on the rise, as Union Bank’s 11th Annual Small Business Economic Survey found 60 percent of small business owners believe 2011 will be a better year in terms of profits.
"The profitability point is the most positive development from our survey, and it proves again why small businesses are truly the backbone of the U.S. economy," said executive vice president Todd Hollander, "and the specific insight and feedback we've gained from this comprehensive survey has national implications as California small business owners are a catalyst for the nation's economic recovery."
As the state moves to balance its $26.6 billion deficit through a mix of spending cuts and taxes hikes - and as Texas implores California businesses to relocate to the Lone Star State - the state will face challenges in maintaining that sense of optimism.