I spend a good chunk of my time complaining about the things the city of Los Angeles is doing wrong – from single-handedly attempting to destroy our hospitality industry with a half-baked proposal to put the homeless in hotels to a City Hall that seems to run rampant with questionable activities – so it may seem odd that, today, I actually want to commend the mayor and her administration for a job well done. But then again, credit is due where credit is due.
About four months ago Mayor Karen Bass announced her fourth Executive Directive, or ED4, which aims to support small-business creation, development, and growth throughout the city. In June, ED4 directed the mayor’s Office of Business and Economic Development to work in collaboration with 10 other city departments and create the Los Angeles Business Steering Committee. Over the following three months, this committee was tasked with developing a framework for the city to improve and fortify our economy and reduce barriers for new businesses that are interested in opening up shop or moving to our city.
Last month, the steering committee returned with a progress report outlining some of the most impactful next steps we can take to make this city more business friendly. One of the main issues this report highlighted is the length of time it takes to get anything done. Bureaucratic delays caused by lengthy application processes, long review and wait times between steps and a lack of understanding on how to actually navigate the system makes a simple goal, such as getting a permit, a long, daunting – and not to mention expensive – process. Changes that streamline these processes and make them more user friendly are an essential first step highlighted in this report that will make running a business in Los Angeles accessible to anyone.
The report also promises an ongoing commitment from the administration to work in partnership with the business community, not against it. Which, quite honestly, is a big departure from previous administrations. This includes the formation of the ED4 Community Business Taskforce, a group comprised of the steering committee, the Los Angeles City Small Business Commission and business policy advocacy organizations throughout the city. This task force will be charged with gathering feedback directly from the business community in order to advance the community’s biggest priorities.
I want to applaud Mayor Bass for these efforts, but I must first acknowledge that they are long overdue. The city of Los Angeles has become an inhospitable place for business with a never-ending list of fees bogging down our local entrepreneurs to a City Council that seems to always be working toward increasing yet another industry’s minimum wage. Add to this list the long-lasting effects of a global pandemic and we are seeing an exodus of businesses that are scrambling to move out of city limits, many going one step further and leaving the state of California altogether.
We cannot afford to lose the businesses that are essential to our local economy. According to ED4’s progress report, Los Angeles is home to more than 470,000 businesses, a big chunk of which are in the Valley. Of these, the majority are small businesses, which are responsible for nearly 50% of all jobs in Los Angeles and 63% of net new jobs nationwide. This city has grown hostile to business and, sadly, this didn’t happen overnight. VICA has been there banging the drum for business. I will commend Mayor Bass for her work to keep the business community alive and well in Los Angeles, but I also will argue that this support cannot come from just one source.
As we saw businesses begin to recover in the early months following the pandemic, in part as a result of support from government, we saw life begin to return to Los Angeles. The alfresco dining program is a shining example of what can happen if government just gets out of the way.
I will leave you with this: I have hope that the rest of L.A.’s elected officials will learn from ED4 and recognize this must be the first of many steps this city will take to help our local businesses thrive. I don’t want to get my hopes up too high, since this is Los Angeles we are talking about, but for the first time in a long time I may actually have a shred of hope for this city.
Stuart Waldman is president of the Valley Industry and Commerce Association, a business-advocacy organization based in Van Nuys that represents employers in the San Fernando Valley area at the local, state and federal levels of government.