Let’s Get Down to Business

As covered in the CV Weekly earlier this month, in September I held a town hall on small business in California. I want to thank the panelists and attendees who contributed to the rewarding conversation on doing business in our state.

I am committed to working hard to help small business owners stay competitive in this ever-changing business climate. The conversation that unfolded at Flintridge Preparatory School certainly highlighted key concepts that I will take to my colleagues in my role as the chair of the Assembly Select Committee on Small Business and Entrepreneurship, which will meet in November.

During the town hall, we heard from people of various backgrounds who share a wide range of perspectives, yet it was unanimously agreed that our state’s greatest problem affecting small businesses is housing affordability.

Across the state, housing has been become an overriding problem and a critical issue affecting business. The lack of affordable housing doesn’t just result in employees enduring long commutes; it impacts their ability to budget for even the most basic needs. With a larger portion of their income going toward rent or a mortgage, Californians have less to spend on products and services offered by small businesses, which affects their bottom line. The real estate price crunch also hits businesses directly because increasing land values forces up rents for commercial space – often pushing a small business to its breaking point.

The consensus of the panel was that we cannot fix this problem without building. Suggestions ranged from putting time limits on CEQA lawsuits (if we can do it for sports stadiums, why not for our small businesses?), increasing incentives for the private sector to build affordable and market-rate housing, and increasing penalties for municipalities that are not complying with their own housing plans.

Although our housing crisis plays an outsized role in the challenges facing California businesses, it’s not the only obstacle. The competition from online businesses is also a huge factor. Too many brick-and-mortar stores across the state struggle for relevancy in an increasingly global economy. Under current law, only businesses with a physical footprint in California have to collect sales tax. This tilts the playing field. As a small business owner of an online retail store, I agree. Sales tax inequity is an unfair advantage that hurts businesses in our community – businesses that are employing our friends and neighbors.

It’s no secret that California expects a lot out its businesses. We have tough regulations to ensure public safety, a clean environment, fair wages and other protections. But it’s fair to say that those same regulations can be a burden and, in some cases, they may have outlived their usefulness. Both businesses and municipalities struggle with layers of red tape, permits and other requirements for lawful operation. As policy makers, we shouldn’t be afraid to take a hard look at laws and regulations and evaluate if they’re really necessary, modern and effective. Our world has changed rapidly over the past few decades, but we’re still regulating businesses like it’s 1985.

During the town hall, we heard suggestions ranging from looking into the requirements cities must fulfill to issue permits to laws that might be outdated in the face of today’s technology to exploring creative ways to level the playing field between small and big business with a sliding-scale for fees and fines based on the size of a business.

Underlying all these ideas was a common thread. For too long, small businesses and their owners have been left out of the conversation. Small businesses form the economic backbone of any community. They contribute the most to the civic life of the community. They are highly involved in local issues, provide crucial day-to-day necessities and services, and help establish the character of a neighborhood.

As the chair of the Select Committee, I want to express my absolute commitment to continue to explore and propose legislation that will make life better for small businesses in California. The town hall got the conversation started, and I am relying on you to continue to stay in touch and share your thoughts.

Please contact my district office by website or phone and share your experiences, your challenges and your solutions. Please know that I am here to hear your voice and represent you up in Sacramento.

https://a43.asmdc.org/; (818) 558-3043

Laura Friedman is the
representative of the 43rd District of the State Assembly.

  laura friedman