From 2001 to 2009, California ranked either first or second in the nation in creating businesses. But last year, the state plummeted to 50th as it lost 4,600 businesses, according to a study by Economic Modeling Specialists Inc.
California was among 29 states that saw a drop in net new businesses, according to the study, which calculates net new business creation by using the quarterly employment and wage information from the Bureau of Labor Statistics.
Three years ago, California ranked first, with 32,829 net new businesses established. Though the number sank to 12,529 during the worst of the recession two years ago, the state still ranked first, ESMI said.
But last year, amid continuing high unemployment, California lost 4,632 businesses from the prior year, the study found. Only Michigan, among the states and the District of Columbia, ranked worse.