The encampment is near Martel Avenue and Sunset Boulevard. The city cleared out the encampment roughly a year ago, but it's back and growing.
One local business owner blames the city for not policing the area and letting homeless people move back in without any pushback.
Other business owners are so frustrated, they've hired security.
Nail salon business manager Kiara Randolph says the homeless don't bother her anymore, but a year ago it was a mess.
"They would flash us at the window, or come steal our candy or just kind of mess with our clients," she said.
Soon after Eyewitness News spoke with Randolph, a homeless man began muttering garbled words and gyrating in front of the nail salon before walking off.
Business owners are not the only ones upset the homeless have moved back in.
Hollywood resident Charlotte Duvall said the situation is "disheartening."
The homeless encampment is in Los Angeles City Council member Nithya Raman's district. Eyewitness News contacted her office about the homeless issue, but no response has been received so far.