Small Businesses Healthy
Small businesses in California grew at a faster rate than other businesses--both small and large--nationwide last year, and 1986 should be another profitable year, according to a report by Wells Fargo Bank.
The retail and service sectors, which account for much of the small-business activity in California and the nation, were strong last year, with California’s retail sales leading the country, the report said.
Proprietors’ income in the non-farm sector, which is an important indicator of small-business health, rose 13% in California, compared to 10% in the United States, the study said.
In addition, a record 638 firms opened or expanded facilities in California during 1985, the third consecutive year in which California led the nation in attracting new investment.
A total of 415 firms announced locations or expansions in the state during 1984.
Los Angeles County led in the location and expansion race with 98, followed by Santa Clara County with 72 and Orange County with 57.
San Diego County had 28 new locations or expansions and San Bernardino County had 36.
Wells Fargo predicted that falling oil prices will squeeze California’s energy sector and agriculture will show little if any improvement.
But growth in the defense industry will continue to spread through the rest of the state’s economy.