In a recent survey, 96 percent of California business owners feel their company will either grow or remain the same in 2014. According to a survey by BMO Harris Bank, the business owners of California are not only feeling optimistic about the U.S. economy, but they are also confident about the California-specific factors they believe will help companies prosper in the new year.
The majority of respondents (84 percent) believe the U.S. economy will improve or stay the same this year, and an even greater majority (92 percent) feel the California state economy will remain steady or get even better. Fifty-one percent of respondents believed their business would grow in 2014, while 45 percent expected it to remain where it was.
“This bodes very well for the future – economic confidence leads to capital investment, which brings with it job creation and future growth,” said Dave Casper, executive vice president and head, commercial banking, BMO Harris Bank.
When asked about specific California economic strengths, the most common answer was the technology and technological expertise to be found in the state.
Tax incentives for businesses in California
One factor that was not discussed in the survey was California taxes. Beginning Jan. 1 of this year, California will begin the Compete Tax Credit Program, which will reward businesses that add jobs or move jobs into the state, according to an article in the San Gabriel Valley Tribune.
The state has made $30 million in tax credits available to reduce business income and franchise taxes. That number will grow to $150 million in the next fiscal year and $200 million in following fiscal years. A quarter of the money will be available strictly for small businesses.