Empowering Small Business to Thrive

by Maria Salinas

There is no doubt that the Los Angeles economy, and the nation’s, is powered by small businesses. Ensuring the small business ecosystem is strong and policies work to help support the creation, development, and growth of small businesses is critical for any city’s economic development plans.

Los Angeles Mayor Karen Bass signed Executive Directive 4 to do just that, supporting economic growth by empowering small businesses. The Executive Directive will focus on opportunities to reduce costs through a review of business taxes and fees, assessing processes to start a business and defining approaches to foster business growth and attraction. Mayor Bass understands the importance of the small business economy in creating jobs.

The Chamber’s recent study, California’s Competitiveness: A Regional Approach, highlighted the need to build entrepreneurial infrastructure and support, which will attract new firms while lowering the barriers to entrepreneurship for its homegrown talent. Attracting and retaining small businesses as proposed by Mayor Bass aligns with the study’s findings.

It’s clear startups and small businesses are facing increasing challenges from high taxes and a stringent regulatory environment. Despite the large fees and complicated and time-consuming approval processes, Angelenos have proven to be willing entrepreneurs. According to the Mayor’s data, small businesses represent 99% of businesses that have opened in the city since 2022 and are responsible for 63% of net new jobs. These first steps, to identify barriers and then to implement change, have the potential of transforming our small business ecosystem.

We know small businesses need extra care and attention to connect to resources and information. The Chamber is a resource for small businesses with programs and information to empower them to thrive.