There's no question California is still "the place to be" for business. California boasts 51 Fortune 500 companies, for example (compared with Nevada's 2.) As this article from the Capitol Weekly highlights, California is still a business magnet. And a July study by the Public Policy Institute of California had this to say about “businesses are fleeing” myth and why California's business climate is still strong.

1. Businesses are not fleeing the state.
Rhetoric aside, California loses very few jobs to other states. Businesses rarely move either out of or into California and, on balance, the state loses only 11,000 jobs annually as a result of relocation—that’s just 0.06 percent of California’s 18 million jobs. Far more jobs are created and destroyed as a result of business expansion, contraction, formation, and closure than because of relocation. Business relocations, although highly visible, are a misleading guide to the overall performance of the California economy. The employment growth rate, which takes into account job creation and destruction for all reasons—not just relocation—is a much better measure of the state’s economy.

2. The “business climate” debate understates California’s strengths.
California consistently scores poorly on business climate rankings. These rankings, however, focus primarily on tax and regulatory costs, which are only one part of the business climate. The business climate should instead be defined to include all costs and benefits that businesses face from locating in California. The business climate also should take into account the skill level of the workforce, the availability of capital and support for new business, and the amenities that make California an attractive place to live.

To show that California is serious about keeping businesses in the state, the Governor and Legislature have taken proactive steps recently to let them know we want them here. The recent budget was balanced without raising taxes on businesses, and actions over the past year include a Small Business New Hire Tax Credit, a Movie/TV Production Tax Credit, a New Home Buyer Tax Credit, and a Net Operating Deduction. These tax cuts and policy changes will save California businesses nearly $9 billion over the next few years. 

All in all, we still believe California is Golden and will see countless businesses start, grow and succeed here.

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