News Summary
California Governor Gavin Newsom has declared May 2025 as ‘Small Business Month’, highlighting the essential role of over 4.2 million small businesses in the state’s economy, which represent 99.9% of all businesses. The proclamation focuses on their contribution to employment, innovation, and economic growth, while also emphasizing state support to help small businesses thrive amidst challenges.
California Declares May 2025 as Small Business Month
California Governor Gavin Newsom has officially declared May 2025 as “Small Business Month,” recognizing the vital role small businesses play in the state’s economy. With more than 4.2 million small businesses, California leads the nation as the state with the highest number of small enterprises, which represent over 99.9% of all businesses in the state.
Impact on Employment and Economic Growth
Small businesses are not only crucial for California’s economy but are also among the most significant employers in the state. They account for nearly half of California’s private sector workforce, illustrating their importance in job creation and economic sustainability. In addition, California has a reputation for being a breeding ground for new businesses, leading the nation in business startups.
Support from Venture Capital and Innovation
In 2024, California businesses attracted over 55% of the nation’s venture capital, showcasing the state’s robust investment climate. This financial support has been essential for innovation, as California produces more patents per capita than any other state and plays a leading role in research and development across various industries.
Manufacturing and Economic Output
The state is a powerhouse in manufacturing, with output that has exceeded the national rate by 83% since the late 1990s. Key sectors include aerospace, computers, electronics, and zero-emission vehicles, further highlighting California’s significant contributions to the nation’s economy.
Efforts to Support Small Businesses
The proclamation emphasizes inclusivity and the vital need for all Californians to have the opportunity to pursue their entrepreneurial dreams. The state has established procurement spending goals aimed at supporting small businesses, with a target of 25% outlined in AB 2019. Moreover, initiatives like the Small Business Technical Assistance Program are designed to aid businesses in starting, growing, and achieving resilience.
Diversification and Community Support
The Accelerate California Inclusive Innovation Hubs initiative also aims to diversify the innovation economy, particularly in underserved communities, by supporting emerging technology sectors. As a testament to California’s global reach, more than 60,000 small businesses are involved in exporting goods worldwide.
Tackling Challenges and Recognizing Contributions
The declaration not only shines a light on small businesses but also emphasizes the state’s commitment to combatting unlawful tariffs that adversely affect local operations. This proactive approach reinforces ongoing efforts to promote the success of small enterprises across California.
Official Recognition
The proclamation was signed on May 15, 2025, underlining the importance placed on small businesses by state officials. Shirley N. Weber, Ph.D., Secretary of State, also attested the declaration, illustrating a collaborative state-wide support for small business initiatives.
Conclusion
As California celebrates Small Business Month in May 2025, the focus remains on the contributions of these enterprises and the ongoing efforts to ensure their growth and resilience amidst a challenging economic landscape. The state’s initiatives and support aim to facilitate an environment where all entrepreneurs can thrive and contribute to California’s esteemed position in the national economy.
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Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
