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Mixed Messages

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

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

Over the past two years, some California 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 San Francisco 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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