story first appeared on mercurynews.com
Relatively
expensive housing, coupled with the high cost of living and doing
business in the Bay Area, has made the nine-county region less
hospitable to new companies than other big urban centers in California,
according to a study released Thursday that urges improvements in what
it describes as this area's burdensome regulatory climate.
Some businesses, like convenience stores and party stores have fared relatively well. Many of these type of businesses have a beer cave display cooler that meets their customers' needs in a special way.
Jon
Haveman, chief economist with the Bay Area Council's Economic
Institute, which produced the report said regulations need to be eased
when trying to start a new venture.
The Bay Area lags major rivals such as Los Angeles and San Diego in jobs created by startup companies, the study determined.
The
strengths of the region are reflected in household income and other
factors, the report stated. The region has increasingly specialized in
high-value industries such as professional, scientific and technical
services, along with information services and products.
The
report also determined that the migration of businesses into -- or the
defection from -- the Bay Area has relatively little impact on the
region's job market.
On average, only 2.3 percent of
new jobs created in the Bay Area in a given year is the result of
companies that came from other parts of California, other states or
other countries. Similarly, only 3.7 percent of the jobs that vanish in a
year are the result of firms defecting from the Bay Area.
Instead,
55 percent of the new jobs created in the Bay Area every year result
from companies that were already located in the Bay Area. And 66 percent
of the job losses in a typical year come from companies that were
already operating in the nine-county region.
