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Mixed Messages

Is California driving away businesses--or setting an example for other states?

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This story appears in the March 2004 issue of Entrepreneur. Subscribe »

Over the past two years, some businesses have risen in revolt. Complaining that state regulations and high utility prices make doing business so expensive that it's nearly impossible to make a profit, business organizations petitioned the state legislature for relief, blasted the op-ed pages of California newspapers, and, ultimately, helped throw Gov. Gray Davis out of power.

Aki Korhonen, president of PC-Doctor Inc., a software producer previously in the Bay area, says, "All the things that go into the business environment are more expensive [in California]. A combination of factors makes business hard." So hard, in fact, that Korhonen, 34, moved his business to Reno, Nevada, in October 2003.

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