‘California’s combination of business, sales, income and other taxes ranks it close to the bottom of the 50 states for being business friendly, according to a conservative Washington think tank.’ This report was released 25 January 2012 by the Tax Foundation.
Whether it is this tax burden or the effects of the recession, I found it remarkable to see many vacant business premises in Los Angeles. There were 3 vacant sites on Rodeo Drive! Prime position properties vacant? And they were not re-furbishing – there were 2 that indeed were refurbishing…
It was not only the luxury goods businesses that showed signs of trouble - I went out to the suburbs and noticed that ordinary businesses weren’t booming either…many, many deserted shop fronts still bearing the names of the former businesses that operated there – from hair and beauty salons to real-estate agents and even restaurants and fast food outlets. All gone! I found this very odd given that LA is an ‘alpha city’: a city generally considered to be an important node in the global economic system.
The traffic in LA is perhaps the worst I’ve ever seen on all my travels – I do believe it affects business – people cancel / are late for / avoid meetings because of the traffic. After all, the US 101/ 1-405 is one of America's top five busiest freeway interchanges.
Now, it is not all doom. This city is rich in its diversity of cultures. LA is also the third richest city (economically) and the fifth most powerful and influential city in the world. International trade, entertainment, culture, media, fashion, science, sports, technology, education and…. Hollywood! It is home to renowned institutions covering a broad range of professional and cultural fields and is one of the most substantial economic engines within the United States.
Given all I observed and have written above, it is profound to note that the business women I met were all actually expanding their businesses! Their businesses are flourishing. I was, and I remain, amazed and humbled. The Angelenos I met are proof that no matter the environment, physical or economic, no matter how much competition there is - good businesses that provide excellent service - not only survive, but they thrive.
