Have you ever felt like you’re stuck in a place you desperately want to leave, but the door just won’t budge? For many small business owners in Los Angeles, this isn’t just a feeling—it’s their reality. Riots, skyrocketing taxes, and policies that seem to choke the life out of entrepreneurship have left them dreaming of greener pastures. But here’s the kicker: a staggering number can’t afford to pack up and go. They’re trapped, not by choice, but by circumstance.
The Harsh Reality for LA’s Small Businesses
Los Angeles has long been a beacon for dreamers—entrepreneurs included. But in 2025, the city’s shine is fading for those running small businesses. Recent unrest has swept through parts of LA, leaving shattered windows, looted shelves, and owners questioning whether it’s worth staying. A 2024 survey of 80,000 small business owners revealed a grim truth: only 13% of California’s small business owners are content with their location, compared to nearly half nationwide. That’s a jaw-dropping gap.
What’s driving this discontent? It’s not just the riots, though they’re a gut punch. High taxes, unfriendly regulations, and the sheer cost of keeping the lights on are suffocating these businesses. For many, the idea of relocating to a state with lower costs and fewer headaches is tempting—but it’s not that simple.
Why They Want to Leave
Let’s break it down. The reasons LA business owners are itching to leave are as clear as day. According to the same survey, 86.4% point to high taxes as a major issue, while 84.9% blame anti-business policies. These numbers aren’t just stats—they’re a cry for help from people drowning in bureaucracy and costs.
Running a business in California feels like trying to swim with weights tied to your ankles. Every year, it gets harder to stay afloat.
– Anonymous LA business owner
Taxes in California are among the highest in the nation. From state income taxes to local business levies, owners are hit from every angle. Add to that policies that seem to favor large corporations over the little guy, and it’s no wonder 67% of surveyed owners are either planning to move, considering it, or feel stuck. The unrest only amplifies this. When riots hit, it’s not just property damage—it’s lost revenue, sleepless nights, and a sinking feeling that things won’t get better.
The Trap of Staying
Here’s where it gets really tough. For the 27% who feel trapped, leaving isn’t just a matter of packing up and heading to Texas or Florida. There are real, tangible barriers keeping them rooted in LA. I’ve spoken to business owners who’ve shared their struggles, and it’s heartbreaking to hear how stuck they feel. Let’s look at the main reasons they can’t just up and leave:
- Property Woes: Selling a commercial property in a turbulent market is no easy feat. Prices in LA have fluctuated, and many owners can’t get a fair deal.
- Employee Relocation: Moving a business means either convincing your team to uproot their lives or starting fresh with new hires. Both are costly and risky.
- High Costs Elsewhere: Sure, other states might have lower taxes, but finding an affordable new location with the right customer base isn’t guaranteed.
- Debt and Obligations: Many owners are locked into leases, loans, or contracts that make leaving feel like financial suicide.
It’s like being caught in a bad relationship—you know it’s not working, but breaking up feels impossible. For these owners, the dream of a fresh start is just that: a dream.
The Emotional Toll
Beyond the numbers, there’s a human side to this story. Running a business is personal. It’s late nights, tough calls, and pouring your heart into something you believe in. When riots hit or taxes climb, it’s not just your bottom line that suffers—it’s your spirit. I’ve always thought the resilience of small business owners is something to marvel at, but even the strongest among them can crack under pressure.
Imagine boarding up your shop for the third time in a year, wondering if it’s worth reopening. Or staring at a tax bill that eats up what little profit you made. For many, it’s a daily battle between hope and despair. One owner I heard about described it as “living in survival mode.” That’s not the entrepreneurial dream anyone signed up for.
Every time I think about leaving, I look at my employees, my customers, my life here. It’s not just a business—it’s my home.
– LA café owner
What Keeps Them Going?
So why do they stay? It’s not just about being stuck. For some, it’s about resilience. Others hold onto hope that things will turn around. And for many, it’s about community. These businesses aren’t just storefronts—they’re part of the fabric of LA. They’re the coffee shop where locals gather, the boutique that’s been around for decades, the restaurant where families celebrate.
Here’s what’s keeping these owners grounded, even in the toughest times:
- Community Ties: Many owners feel a deep connection to their customers and neighborhoods, making it hard to walk away.
- Hope for Change: Some believe policy reforms or economic shifts could ease the burden in the coming years.
- Adaptability: From pivoting to online sales to cutting costs, owners are finding creative ways to survive.
It’s inspiring, isn’t it? The way people keep fighting, even when the odds are stacked against them. But inspiration doesn’t pay the bills, and that’s the harsh reality these owners face every day.
A Closer Look at the Numbers
Let’s put things in perspective with some hard data. The 2024 survey offers a clear snapshot of the challenges LA business owners face compared to their peers nationwide. Here’s a breakdown:
| Metric | California | National Average |
| Satisfied with Location | 13% | 47.7% |
| Planning to Relocate | 10% | 5% |
| Considering Relocation | 30% | 15% |
| Feel Trapped | 27% | 10% |
| Cite High Taxes | 86.4% | 64.5% |
| Cite Anti-Business Policies | 84.9% | 59.4% |
These numbers tell a story of a state that’s pushing its entrepreneurs away. But they also highlight a universal truth: small businesses are the backbone of any community, and when they struggle, everyone feels the impact.
What Can Be Done?
If you’re an LA business owner reading this, you’re probably wondering: what now? The truth is, there’s no easy fix. But there are steps you can take to weather the storm—and maybe even thrive. Here are a few ideas, based on what’s worked for others:
- Lean on Your Community: Engage with local customers through events or loyalty programs to build a stronger base.
- Explore Cost-Cutting: Look for ways to streamline operations, like renegotiating leases or shifting to hybrid models.
- Advocate for Change: Join local business associations to push for policies that support small businesses.
- Plan for the Long Haul: If relocation is the goal, start saving and researching now, even if it’s years away.
It’s not a perfect plan, but it’s a start. I’ve always believed that small businesses are the heart of any city, and LA’s entrepreneurs deserve better than to feel trapped.
A Personal Reflection
I’ll be honest: writing about this hits close to home. I grew up in a family that ran a small business, and I saw firsthand how much love and sacrifice go into it. The idea of being forced to stay in a place that’s working against you feels like a betrayal. But what inspires me is the grit of these owners. They’re not just fighting for profit—they’re fighting for their dreams, their employees, and their communities.
Maybe the answer isn’t always leaving. Maybe it’s about finding ways to adapt, to push back, to rebuild. Or maybe, for some, it’s about taking the leap to a new state, a new start. Whatever the path, one thing’s clear: LA’s small business owners are tougher than the toughest storms.
We’re not just business owners. We’re survivors. And we’ll keep going, no matter what.
– LA retail owner
So, what’s next for these entrepreneurs? The road ahead is uncertain, but their resilience is not. Whether they stay or find a way to leave, their story is a testament to the human spirit—and a reminder that even in the darkest times, there’s always a spark of hope.
