Irvine, California is the best big city in the state to open a new business. This is evident from a new table on the WalletHub financial website.
WalletHub looked at the ecosystem, as local entrepreneurs call it, in 100 cities that have to do with access to resources. Access to finance, venture capital investments per capita and investor penetration were taken into account. Other considerations included the availability of human capital, the quality of local colleges and universities, the proportion of the population with college degrees and the growth rate of the working-age population.
Irvine was the city with the best education. About 69 percent of adult residents have at least a bachelor’s degree, more than double the national average of 32 percent.
These factors were more than enough to offset Irvine’s # 97 business expense list. They were just cheaper than San Francisco (the most expensive city to do business with) and the nearby Silicon Valley cities of Fremont and San Jose.
Irvine was number 20 in the country’s 100 largest cities to open a business. It was the only city in California that was in the top 20.
The rest of the top 20 list of places to start a business was dominated by cities in southeastern states like Texas, North Carolina, and Florida.
Other California cities in the top third of the WalletHub list were Long Beach, Fresno, Oakland, and Stockton.
San Francisco ranked best in the Business Environment category and worst in the Business Expenses category, which includes labor and office rent.
The # 1 city on the list of Best Places to Open a New Business was Laredo, Texas.
Tim Shaler is a professional investor and economist based in Southern California. He is a regular columnist for The Epoch Times, where he only provides some of his original economic research.