Business Friendly? State Gets an F but L.A. a C-

Los Angeles ranked only a bit below average when it comes to creating a friendly environment for small businesses and entrepreneurs, according to a survey released Wednesday. California, however, scored an F for a small-business friendly environment, according to the fifth annual survey conducted by Thumbtack, a San Francisco online service that matches consumers with professionals such as handymen, housekeepers, tutors, photographers and wedding planners. The survey was conducted in April and early May of more than 12,000 professionals across the United States. Cities and states were ranked based on 10 categories, including ease of starting a business, ease of hiring, health and safety regulations and zoning and land use regulations. Los Angeles had an overall C minus ranking for how officials support small business owners. The city ranked best, with a B plus, for ease of hiring but had a D grade for ease of starting a new business. It had an F grade for providing networking and training programs for small business owners. Last year, the city also had a C minus overall friendliness grade. California had F grades in eight of the 10 categories, with the exceptions being providing training and networking programs for which it received a B minus, and ease of hiring for which it received a C grade. For the five years the survey has been done, the state has received an overall F in business friendliness every year except for 2013 when it received a D grade. Lucas Puente, an economist at Thumbtack, said the survey respondents reported that it is harder to start and grow a business when government regulations complicate obtaining licenses and permits, hire employees and pay taxes. “These insights provide a roadmap for policy makers to create environments that foster entrepreneurship and innovation-outcomes critical for continued economic growth,” Puente said in a prepared statement.