OC Small-business Owners Optimistic Despite Dismal Statewide Report Card

Despite overall rankings that put California among the least friendly states for small business, small-business owners in Orange County rated themselves healthier and more optimistic than those in any other part of the state.

This according to results released Tuesday from a survey conducted by Thumbtack.com and the Kauffman Foundation.

"After a two-month survey of over 6,000 small-business owners nationwide, it's clear that California is failing in the eyes of its small businesses," said Sander Daniels, co-founder of Thumbtack.com. "Orange County is doing its best to lift up the state, but it's difficult to overcome the damage done by California's other regions."

On the flip side, noted San Juan Capistrano Chamber of Commerce's CEO, Mark Bodenhamer, California firms tend to be more profitable.

"A 2011 Public Policy Institute of California study indicated that although the cost and regulatory difficulty of doing business in California is extraordinary, California firms actually earn competitive profit relative to companies in less burdensome states," Bodenhamer said. "This is because of the amazing resources that California businesses have access to; good infrastructure, a dynamic and well educated workforce, investment capital, etc."

Thumbtack.com surveyed 6,022 small businesses across the United States. The survey asked questions about the friendliness of states toward small business and about small business finances, such as:

• In general, how would you rate your state's support of small business owners?
• Would you discourage or encourage someone from starting a new business in your state?
• How would you rate your company's financial situation today?

California earned Fs in six of the 12 categories in the survey, including overall friendliness, tax code and regulations. Despite the difficulties business owners said they face doing business in the state, Orange County ranked first in California in terms of overall health for small businesses.

Orange County is an extreme example of the dichotomy of enduring the regulatory and tax environment but still managing to come out ahead.

"The cost to operate here is immense, but so is the opportunity to produce great products and services and to sell those at relatively high rates," Bodenhamer said. 

"California and Orange County are, overall, good places to do business," he added. "The huge disappointment is knowing how great it could be for businesses and the local economy if the state Legislature stopped putting so many burdens on these companies."