California’s commitment to small businesses: What Governor Newsom’s 2025 proclamation means

Governor Gavin Newsom officially declared May “Small Business Month” in California, recognizing the power of entrepreneurship and the importance of investing in small businesses statewide. This ceremonial gesture is a statement; California sees its 4.2 million small businesses as the economic engine of the state.

These businesses account for nearly half of California’s private-sector jobs, creating opportunities across every zip code. And they represent the innovation, hustle, and resilience that define the California Dream.

In his proclamation, he honors the hard-working entrepreneurs who keep California’s economy moving, from Main Street to manufacturing floors to fast-growing tech corridors. But it also shows the state’s commitment to supporting these businesses with real action.

Let’s break down what this means and why it matters.

What makes California the leading state for small businesses

Small businesses make up more than 99.9% of all businesses in California. They employ nearly half of California’s private workforce and operate across every sector from construction and retail to agriculture, tech, wellness, logistics, and food. However, it’s not just the numbers that set California apart. It’s the environment, too. 

Here, a family-run business in Central Valley, Quesadilla Gorilla, starting from a small local kitchen, has grown into a regional brand beloved for authentic flavors and community roots, showing how local businesses can scale without losing their identity. 

Meanwhile, in Sacramento, Soaps by a Chemist began as a passion project for a chemical engineer who turned her knowledge into a thriving handmade soap business that emphasizes sustainability and health. 

Not far from Sacramento, Rancho Gordo in Napa Valley has turned heirloom beans into a national sensation. By blending traditional farming with smart branding and direct-to-consumer sales, they’ve carved out a niche in the gourmet food space and proved there’s a strong appetite for authenticity. Their growth reflects how California nurtures not just innovation but reinvention across every kind of industry.

Behind these stories and businesses is an ecosystem that nurtures growth. 

The state produces more patents per capita than any other state, and its manufacturing output exceeds the national average by a staggering 83%. Add in a deep pool of talent, access to global markets, and a culture that rewards bold ideas, and you’ve got a business environment where small companies thrive. 

What the state is doing to support small businesses

California offers a robust network of initiatives to support entrepreneurs at every stage. Governor Newsom’s proclamation builds on these programs and laws, reinforcing the state’s commitment to helping entrepreneurs start strong, scale smart, and stay resilient.

Here’s what’s already in motion:

• A 25% procurement goal through Assembly Bill 2019, ensuring more state contracts go to small businesses.
• The Small Business Technical Assistance Program funds local partners to help business owners access capital, licensing, training, and more.
• Accelerate California Inclusive Innovation Hubs that focus on expanding access to funding and support in underserved communities and growing emerging sectors.
• Ongoing action to combat unlawful tariffs and protect California exporters, many of whom are small or mid-sized operations.

These programs recognize your contribution to the economy and your impact on your community. It’s a reminder that small businesses aren’t small in value, and they shouldn’t be left behind when it comes to support, funding, or opportunity.

If you’re a small business owner in California, this month is your opportunity to reflect and recharge. It’s also a chance to tap into valuable resources. Apply for state-funded grants, join technical assistance workshops, pursue procurement contracts, or connect with innovation hubs designed to support your growth.

But don’t stop there.

Access to resources means little if your finances aren’t ready to support that next move. Clean books, accurate payroll, and organized tax filings are the baseline if you want to bid for government contracts, qualify for grants, or scale sustainably. And when your next opportunity depends on it, knowing where to start and how to navigate the financial side of business can still feel overwhelming. That’s where expert guidance makes all the difference

How CoCountant supports California’s growing businesses

As part of our bookkeeping and accounting services, we work with growing businesses like yours in California (and all across the US) to keep their financial operations organized with up-to-date records, tracking every transaction, reconciling accounts regularly, and preparing accurate financial reports. Whether you’re running a local construction crew, managing a wellness studio, or exporting products, your business requires bookkeeping that helps you grow with confidence.

Here’s how we help:

• Daily bookkeeping: Your transactions stay updated, categorized, and accurate so you always know where your money is going.
• Grant & procurement readiness: We make sure your financial records are organized and complete so missing documents don’t cost you funding opportunities.
• Tax-ready books: We ensure your financials are fully reconciled and audit-proof. From tracking deductible expenses to flagging inconsistencies, your CPA or tax preparer gets clean, organized records.
• Payroll & 1099 management: Whether you have employees or subcontractors, we’ll make sure they’re paid correctly and on time.
• Direct bookkeeper access: We don’t just plug you into a platform; we pair you with a Quickbooks certified bookkeeper who knows your business and keeps it on track.

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