Most California-based entrepreneurs are optimistic about the future, according to a recent survey by California Bank & Trust (CB&T). Over 86 percent say their business is heading in the right direction, while 63 percent expect their company’s growth rate to increase in 2014.
Most business owners in the Golden State are optimistic despite government regulations (such as Obamacare) and California drought, which may result in water shortages. Despite recent challenges, 43 percent of entrepreneurs in the Los Angeles area expect a growth rate of more than 10 percent over the next 12 months, compared to 38 percent in the Bay Area, and 26 percent in San Diego.
Here are other results from CB&T’s survey:
- 72 percent say the rise in the minimum wage has a positive or neutral effect on their company
- 63 percent say the Affordable Care Act has a positive or neutral impact on their business
- 59 percent say the drought would have no effect on their business
However, the California drought is expected to result in higher energy bills, food prices, and property insurance rates.
“Besides higher food prices, the drought may hit businesses, homeowners and renters in other ways,” according to California Bank & Trust’s March 13 blog. “For instance, without relatively inexpensive hydroelectric power, state electric rates may rise; the 2007-2009 California drought cost consumers around $1.7 billion more in energy bills. And due to the potential for drought-related fires, property insurance may soar in cost or be unavailable.”
See the infographic below.
Cover photo credit: Philipp Rummele
