Why are companies leaving California? Insights from Sam Wyly

In the last few years, we’ve seen an exodus of businesses leaving California for greener (and cheaper) pastures in Texas. From Toyota to Hewlett Packard to Occidental Petroleum, more and more businesses are pulling up stakes and headed for the Lone Star State. But why? What is it about Texas that’s so appealing to businesses? Here are a few reasons Sam Wyly gives in Texas Got It Right!.

1. Cost of doing business. Simply put, it costs less to do business in Texas than in California. From lower taxes to cheaper land and labor, there is a multitude of reasons why Sam Wyly says Texas is more affordable for businesses. And when your bottom line is freed from exorbitant expenses, you can reinvest that money into other aspects of your business, like innovation and growth.

2. Pro-business attitude. The state government in Texas is much more business-friendly than the state government in California. In Texas, regulations are fewer and less onerous, meaning businesses can focus on operating their businesses rather than jumping through hoops set up by overzealous bureaucrats. According to Sam Wyly, businesses want to focus on making money – not on trying to stay in line with state regulations.

3. More available talent. With two of the largest cities in the country (Houston and Dallas) and a plethora of smaller cities and towns, Texas has no shortage of talented workers for businesses to choose from. Universities like Rice University, the University of Texas, and Texas A&M produce a dependable stream of smart and talented graduates. Combine that with the lower cost of living in most parts of the state, and you have a recipe for attracting top talent from around the country.

4. Proximity to other markets. Unlike California, which is largely cut off from the rest of the country by mountains and deserts, Texas has easy access to both East Coast and West Coast markets via interstates 10 and 20. This makes shipping and logistics much simpler (and cheaper) for Texas-based businesses.

5. Friendly climate…literally! The weather in Texas is much more conducive to year-round business activity than California, which can be pretty extreme in some parts of the state. When businesses don’t have to worry about shutting down operations due to weather conditions, it frees up money that can be reinvested elsewhere.

According to Sam Wyly, there are many reasons businesses are leaving California for Texas these days. From lower taxes to a friendlier regulatory environment to abundant talent pools, Texas has a lot to offer businesses looking to relocate. And with easy access to markets on both coasts, not to mention a more temperate climate, it’s no wonder that so many companies are moving to the Lone Star State!