Alan, a viewer with deep affection for Palm Springs, raised a concern that hits directly at the Valley’s renewed efforts to diversify beyond tourism. His question was simple: if businesses are leaving California at such high rates, why isn’t the state doing more to keep small businesses here? His frustration echoes a broader trend — California has steadily lost more companies than it has gained since at least 2014, with business departures peaking in 2022. In 2021 alone, 153 companies left the state, more than double the number from the year before.
Alan says he’d love to bring his own business to California, but the endless fees, regulations, and “nickel-and-diming” make it nearly impossible for small operators to survive. He loves Palm Springs — its landscape, lifestyle, and community — but argues that none of that matters if entrepreneurs can’t afford to set up shop.
And that’s exactly the dilemma for the Coachella Valley. If Palm Springs wants to reduce its dependence on tourism and build a more stable, year-round economy, it needs a thriving small-business ecosystem. Big companies may not flock here, but small businesses can create jobs, hire local workers, and keep money circulating within the community. While the Valley can’t control statewide policy, it can make itself more attractive to entrepreneurs — offering local incentives, cutting red tape where possible, and sending the message that small business owners are welcomed and valued.
One small business at a time may not sound glamorous, but it’s a realistic path toward an economy that doesn’t rise and fall with vacation seasons. For Palm Springs, nurturing small business growth might be the clearest route to independence from the tourist dollar.
By: NBC Palm Springs
November 20, 2025
