The primary cause of businesses leaving California is the economy. The state is too expensive, too regulated, and too heavily taxed for both companies and their employees. As a result, these companies are relocating to states with lower costs, fewer regulations, lower taxes, and a better quality of life for their workers. For the past decade, businesses and individuals have been leaving California for other states, particularly Texas.
This is a worrying trend for California's future, as companies are unable to invest more in the current state. According to a CEO survey, Texas was ranked best for business and California worst for business out of 50 states. Texas has become the new California and California is becoming the new Rust Belt, losing businesses and people to states that offer more opportunities and better, more affordable lives. California is also losing the talented creators of these businesses, creators who can start additional transformative businesses in their lives.
Governor Newsom is traveling around the state to highlight efforts to reopen schools and businesses as it faces the threat of retirement.