SAN FRANCISCO, CA / ACCESSWIRE / May 3, 2019 / Business districts are expanding into new locations all across the country in places that weren't on the radar of today's large organizations and the investors until recently. The cause focuses around location diversification, the ability to access new market opportunities and desaturate those locations that have made competing in them challenging at best for all corporations.
The biggest transition has been seen in the state of California where its stronghold position as the obvious site for new business has started to depreciate. Known for its strict guidelines and regulations across areas of development, consumer products and environmental restraints; the state has made it harder in some locations to sustain growth depending on the industry companies are operating in. Combined with its place as one of the most expensive areas to live and run a business in, these barriers to entry have only continued to make entering locations like California's Silicon Valley or Bay Area not feasible or sustainable. Ultimately causing businesses to seek commercial opportunities in states such as Texas, Illinois and Florida; there is a traceable loss in new development rates that show low levels of spend on economic development when compared to other areas that have made expansion a key strategy.
Despite this market change, the Californian economy is still booming, surpassing all states in one main area - venture capital investment. Facts collected from the Dow Jones VentureSource highlights although the state is facing adversity in its traditional business-friendly landscape that once brought leading names like Disney, Oracle, Intel, Chevron, Cisco Systems from all over the world, they are growing fast in investments made from venture capitalists looking to fund startups and young business opportunities.
California's companies have tapped into a massive revenue stream that has helped consistently raise nearly half of the nation's billions in venture funding since the early 2000's. With its near creation of the tech Industry as we know it today, this doesn't come as a surprise to successful entrepreneurs like Marcus Hiles, a leading property developer and investor based out of Texas. 'Investors know California for its status in being critically important to the nation's economic growth through cash flow and job creation. Offering one of the most sophisticated business and cultural infrastructures in the world, top corporations, talent and investors will continue to be attracted as long as the state's reputation and results remain.'
This cash-raising advantage is ultimately a recipe for wealth for both startups and entrepreneurs. The fact that California has become known for posing substantial cost and regulations to those trying to enter its market is a clear trend - a trend that hasn't yet imposed significant change to those already operating within state lines.
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