August 16, 2025

California Declares May 2025 as Small Business Month

News Summary

Governor Gavin Newsom has proclaimed May 2025 as ‘Small Business Month’ in California, recognizing the essential role of small businesses in the state’s economy. With over 4.2 million small businesses contributing to employment and innovation, California leads the nation in entrepreneurship and manufacturing output. The state aims to support small enterprises through various initiatives and procurement goals, ensuring an inclusive economic landscape and addressing challenges faced by local businesses.

California – Governor Gavin Newsom has officially designated the month of May 2025 as “Small Business Month,” a recognition of the vital role that small businesses play in the state’s economy. With over 4.2 million small businesses, California boasts the highest number of such enterprises in the United States, accounting for more than 99.9% of all businesses in the state.

Small businesses are a cornerstone of California’s private sector, employing nearly half of the state’s workforce. As a leading state in business startups, California exemplifies entrepreneurship, having secured over 55% of the nation’s venture capital in 2024. This dominance is coupled with a prolific output of innovation, as California produces more patents per capita than any other state, reinforcing its position as a leader in research and development.

Manufacturing and Economic Impact

California is significantly ahead of the national average in manufacturing output, which has increased by 83% since the late 1990s. The manufacturing sector covers various industries, including aerospace, computers, electronics, and zero-emission vehicles, showcasing the state’s diversity in production capabilities.

In an effort to further support small businesses, California has implemented procurement spending goals as outlined in Assembly Bill 2019, targeting 25% of state procurement for small businesses. This aims to enhance the economic landscape by providing more opportunities for smaller enterprises.

Support Programs for Small Businesses

The state also offers initiatives such as the Small Business Technical Assistance Program, designed to help businesses start, grow, and maintain resilience in a competitive market. Furthermore, the Accelerate California Inclusive Innovation Hubs initiative aims to diversify the innovation economy by supporting underserved communities and emerging technology sectors.

In line with these efforts, more than 60,000 small businesses in California are engaged in exporting goods globally, expanding their market reach and contributing to the overall economy. The proclamation emphasizes inclusivity and equal opportunities, allowing all Californians to pursue their entrepreneurial ambitions.

Addressing Challenges

California is proactively addressing challenges faced by local businesses, including pushing back against unlawful tariffs that adversely affect their operations. The state recognizes the significant contributions of small businesses to its economy and is committed to promoting their success.

Proclamation Details

The proclamation officially recognizing May 2025 as “Small Business Month” was signed by Governor Gavin Newsom on May 15, 2025, with Secretary of State Shirley N. Weber, Ph.D., attesting to the declaration. This acknowledgment aligns with the state’s ongoing efforts to foster a thriving environment for small businesses and ensure that they remain a driving force in the economy.

Conclusion

The declaration serves not only as a celebration but also as a commitment to enhancing the conditions for small enterprises in California. By supporting these businesses through targeted initiatives, the state aims to sustain economic growth and nurture the entrepreneurial ecosystem that defines California.