Wondering why Austin is getting an influx of new businesses? The answer to this question is seen in the recent Pacific Research Institute report of the best business climates for small businesses. According to the study, California is the worst state for small businesses to host their businesses because of the low minimum wage fees and disability insurance rates. Many Californian businesses also report difficulties in keeping up with the state’s regulations and costly to maintain. Aside from California, Vermont, Rhode Island, New Jersey and Connecticut are also cited to have poor regulatory policies that makes it difficult for businesses to flourish and move to other areas to make business.