Golden State Today

Inc. Magazine’s annual rankings of the top 5,000 companies for revenue growth over the past three years included 672 California businesses, nearly 200 more than the next closest state.

The Inc. 5000 companies have generated 874,940 jobs and $317 billion in revenue over three years, with median revenue growth of 1,637%. California topped the list with 672 companies, including six companies in the national top 20.

“California has the most dynamic, entrepreneurial economy in the country. Businesses that start and grow here change the world. It’s why we’re the fifth largest economy in the world and continue creating more jobs than any other state,” said Governor Gavin Newsom.

California companies ranged from storage services for travelers throughout the globe to a cyber insurance pioneer to clean energy solutions for homeowners. The state's dominance of the Inc. 5000 list is another indication of California’s economic strength.

California has been recognized as the fifth largest economy in the world for seven consecutive years, with a nominal GDP of nearly $3.9 trillion in 2023 and a growth rate of 6.1% since the previous year, according to the U.S. Bureau of Economic Analysis. On a per capita basis, California is ranked as the second largest economy in the world among large economies.

Additionally, California has maintained its position as having the highest level of tourism spending in the nation. Travel spending reached an all-time high of $150.4 billion last year, surpassing previous records set in 2019 by 3.8% and marking a 5.6% increase from 2022 levels.

The new travel-spending record generated $12.7 billion in state and local tax revenue by visitors in 2023, reflecting a 3% increase over figures from 2019. Tourism also created approximately 64,900 new jobs last year, bringing total industry employment to around 1,155,000 positions.

According to recent state and federal employment data, California's fast food industry has seen significant growth as well, boasting over 750,000 jobs as of July 2024 with continuous monthly job additions throughout this year.

For the first time since 2014, California is home to more Fortune 500 companies than any other state – surpassing Texas and Florida among others – with diverse sectors such as tech, finance, and entertainment contributing to its economic landscape. The state currently hosts 57 companies on this prestigious list while Texas and New York are tied for second place with each housing 52 companies.

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