California's energy crisis isn't just affecting existing entrepreneurs. The hidden casualties in areas like San Diego County? Prospective entrepreneurs.
"San Diego is fairly good at entrepreneurial startups; that's been our history. And it's always expensive to do business [here], but you take that as part of the scenario," explains Kelly Cunningham, research director with the San Diego Regional Chamber of Commerce.
But the economist says the escalating energy prices have had a chilling effect on startups. After electricity costs spiked in June and July, the number of new business licenses issued dropped 15 percent in August 2000, 25 percent in September and 25.6 percent in October, according to Cunningham. That slide follows a steady upward trend.
Where the States Stand
Deregulation legislation or order enacted: Arizona, Arkansas, California, Connecticut, Delaware, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia
Ongoing commission or legislative investigation: Alaska, Colorado, Florida, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, North Carolina, North Dakota, South Carolina, Utah, Vermont, Washington, Wisconsin, Wyoming
Source: Energy Information Administration