A good measure of business friendliness is to take a look at how the US Chamber of Commerce ranks the states in this regard. I did a while back. California is dead last. And don't even get me started on the tax rates that are about to explode beyond their already bloated level.
"Granted, you might not want to take the magazine’s findings too seriously; there’s no information about what, exactly “business friendliness” or any other non-quantitative ranking criteria means."
Nothing to see here; move along.
"In comparison, California is the worst. Unless of course, you’re in technology and/or looking to raise venture capital — when it comes to those two categories, the Golden State tops the charts."
"But in terms of “cost of business” and “business friendliness,” the magazine ranks it No. 48."
Note that it is #1 in terms of availability of capital and technology. These features may be more important for a startup than the CEOs of established firms interviewed for the rankings.