Los Angeles Business Journal

Los Angeles Gets a D for Small Biz Friendliness

By Howard Fine Monday, August 4, 2014

Los Angeles once again received a grade of D for its overall friendliness to small business, according to a report to be released Tuesday.

The report, from Thumbtack.com, a San Francisco Internet marketplace for local services, surveyed 12,000 entrepreneurs nationwide, having them rate 82 cities and most states on their business climates. Los Angeles and almost all California cities received grades of C- or lower.

Los Angeles received a D grade last year and an F grade in 2012.

This year, the survey said, Los Angeles earned D or D+ for ease of starting a business, health and safety regulations, licensing and training and networking programs. The city posted grades in the C range for regulations, the tax code, environment and zoning. The only bright spot: a B+ for the ease of hiring workers.

“The data show that Los Angeles’ small businesses believe the city could be doing better,” said Jon Lieber, chief economist of Thumbtack.com. “Creating a business climate that is welcoming to small, dynamic businesses is more important than ever, and Los Angeles still needs to improve towards this goal.”

The top cities in this year’s survey were: Colorado Springs, Colo.; Boise, Idaho; Houston and Austin in Texas and Louisville, Ky.