Mayor Karen Bass issued her fourth executive directive in her term to support small business development, creation and growth in Los Angeles. On June 22, Bass signed Executive Directive 4 to identify onerous processes and fees impeding small businesses.
“People want to start and grow their businesses in Los Angeles, but over the years, city hall has made those dreams harder to achieve by requiring fees upon fees and complicated and time-consuming approval processes,” Bass explained during the event.
“It’s past time to make it easier for small and minority businesses to do business in LA, which is why Executive Directive 4 is an important first step in a series of initiatives that put city hall on a path to being a partner to attracting and retaining small business instead of a barrier.”
Bass was joined by City Council President Paul Krekorian and local business leaders as she announced the formation of the Los Angeles Business Steering Committee, which will connect leaders from city departments to identify barriers business owners face. Deputy Mayor Rachel Freeman and the Mayor’s Office of Business and Economic Development will head the committee.
“On the city council, we’ve been finding ways to make Los Angeles an easier place to do business,” Krekorian said.
City council has reformed procurement processes to create opportunities for small entrepreneurs and created the Restaurant Beverage Program, offering restaurateurs shorter and less expensive routes to obtaining liquor licenses.
The new directive and Business Steering Committee will be “a great help in reducing unnecessary obstacles to starting a business or staying in business right here in Los Angeles,” Krekorian added.
During the next 90 days, the committee will investigate the current state of commerce in the city and offer recommendations based on its initial findings. Its main objectives will be investigating the impact of taxes and fees on small businesses, evaluating other jurisdictions’ approaches to growth to determine best practices and assessing existing processes and timelines related to starting and operating a business.
According to data from city departments, small businesses are responsible for 63% of net new jobs and represent 99% of businesses that have opened in the city since 2022.
“Mayor Bass understands the importance of the small business economy to grow and create jobs in the city of Los Angeles,” noted Maria S. Salinas, president and CEO of The Los Angeles Area Chamber of Commerce. “This approach by the Mayor will help to reinforce the region’s competitiveness, as well as provide the infrastructure to attract new firms while lowering the barriers to entrepreneurship for homegrown talent.”
Business owners like Sonya Blake, president and CEO of The Valley Economic Alliance, expressed their support for the directive at the event.
“Mayor Bass’ taking this action is the direction we like to see our cities going,” Blake said. “Reducing burdensome business fees, taxes, and regulations while protecting residents, workers, and our environment stands to strengthen our local small businesses and boost our regional economy.”
Tracy Hernandez, Founding CEO of BizFed, was “particularly pleased” with the new directive, focusing on small businesses, which Hernandez noted are often pushed out of the California market. “This executive directive is an investment in the city’s homegrown talent and a road map to create better conditions for success,” she said.
