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With a population of over 35 million and a diverse economy generating $1.4 trillion (14% of the GDP), California is the wealthiest and most populous state in the U.S. In fact, the state has the fifth largest economy in the world. Los Angeles alone ranks as the fourth largest economy in the country as compared to other states. California has nine separate economic regions and its main industries include agriculture (primarily vegetables, fruits and nuts, dairy products, cattle, nursery stock, and grapes), tourism, manufacturing, food processing, petroleum, construction, telecommunications, electronics, engineering services, computers and computer software, aerospace, and entertainment. Looking ahead to future industries, the state is making considerable advances in biotechnology, microelectronics, and environmental technology. Sacramento is the state capital.
More people of Native American, Chinese, Japanese, Filipino, Korean, and Vietnamese descent call the Golden State home than any other, making it one of the most ethnically diverse regions in the world. Indeed a quarter of all Californians are born outside the U.S. The majority of the state’s population is concentrated along the coast; the Los Angeles-Riverside-Orange and San Francisco-Oakland-San Jose areas rank as the second and fourth largest consolidated metropolitan areas in the U.S., respectively. While California’s population has a median age of 33, it does have a larger number of senior citizens (over four million) than any other state.
In 2004, the state ranked 12th in the nation with a per capita personal income of $35,019. The median family income for 2003 was $57,130 and the homeownership rate, at 59.7%, fell just below the national rate of 69.0%. The state’s unemployment rate for 2004 was 6.2%, while the U.S. as whole was at 5.5%. There are over 2.6 million small businesses in the state, making up 98% of employers.
Recognizing the large role exporting plays for California, state and local governments support overseas expansion with many resources for businesses including financial assistance, training and technical support. Promoting small business growth, the Commerce & Economic Development Program provides loan guarantees and tax incentives, as well as direct loans through eleven nonprofit Financial Development Corporations. Grants to match federal funding for research and development for new product and service commercialization acceleration are provided for by the California Technology Investment Partnership (CalTIP) program to reward technological innovation. Working to provide streamlined infrastructure financing for California’s local communities, the California Infrastructure and Economic Development Bank (I-Bank) and California Financing Coordinating Committee (CFCC) offer several funding programs. Intent on providing its communities with incentives to attract new business and jobs, the state’s Enterprise Zone Program initiative offers businesses powerful tax incentives for developing in economically distressed areas.
A few of the many other resources for businesses include California Business Investment Services (CalBIS) (working with companies considering the state for new business investment and expansion), TeamCalifornia (a network of economic development organizations working to create jobs while attracting, retaining and expanding businesses), and the Division of Technology and Community Innovation (focusing on technology-based business development).
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