The state of California is one of the top destinations in the US for entrepreneurs who wish to start a business.

With a diverse economy, dynamic market, and supportive environment, it offers numerous opportunities for new ventures to flourish.

However, not all towns in California are equally suitable for entrepreneurship.

Some offer more favorable conditions than others in terms of infrastructure, resources, labor market, regulations, and market access. Today we will explore the top 20 towns to start a business in California based on various indicators and criteria.

Methodology

To identify the top 20 towns, we used a multi-criteria approach that considered several factors and sources, such as:

- The number and growth rate of small businesses in the town
- The availability and quality of commercial real estate, including office, retail, and industrial spaces
- The level of business-friendly policies, such as tax incentives, permits and licenses, and regulatory compliance
- The access to funding sources, such as grants, loans, and venture capital
- The presence of a skilled and diverse workforce, including graduates, professionals, and entrepreneurs
- The proximity to major transportation hubs, such as airports, highways, and ports
- The quality of life for residents, such as cost of living, education, healthcare, and cultural amenities.

We collected data from various sources, such as the US Small Business Administration, the Bureau of Labor Statistics, the Economic Development Agency, the National Association of Realtors, and local Chambers of Commerce. We also interviewed experts in the field, such as business consultants, real estate agents, and entrepreneurs. We used a scoring system to rank each town based on these factors and selected the top 20 based on the highest scores.

Homeless encampments line the boardwalk, as the coronavirus disease (COVID-19) disease pandemic continues, on Venice Beach in Los Angeles, California, U.S., April 14, 2021. Picture taken April 14, 2021. REUTERS/Lucy Nicholson

Results

The top 20 towns to start a business in California, in alphabetical order, are:

1. Alameda - located in the San Francisco Bay Area, it offers a vibrant downtown, affordable office spaces, and a skilled workforce.

2. Burbank - located in Los Angeles County, it is home to media and entertainment companies, such as Warner Bros. and Disney, and offers tax incentives and permit assistance.

3. Carlsbad - located in San Diego County, it offers a coastal lifestyle, a business park with high-tech companies, and a supportive chamber of commerce.

4. Chula Vista - located in San Diego County, it offers a diverse and multicultural community, a startup incubator, and a strategic location near the Mexican border.

5. Costa Mesa - located in Orange County, it offers a thriving retail and hospitality sector, a business improvement district, and a college town atmosphere.

6. Culver City - located in Los Angeles County, it offers a mix of startups and established firms, a film and TV production hub, and a supportive city council.

7. El Segundo - located in Los Angeles County, it offers a concentration of aerospace and defense companies, a low tax rate, and a revitalized downtown area.

8. Fremont - located in the Silicon Valley, it offers a high-tech cluster, a diverse multicultural population, and a strategic location near major freeways and airports.

9. Glendale - located in Los Angeles County, it offers a diversified economy, a walkable downtown, and a business-friendly climate including tax incentives.

10. Irvine - located in Orange County, it offers a master-planned community, a world-class research university, and a business accelerator program.

11. Long Beach - located in Los Angeles County, it offers a deep-water port, a thriving arts and culture scene, and a supportive Innovation Team.

12. Mountain View - located in the Silicon Valley, it is home to tech giants such as Google and LinkedIn, a diverse and educated workforce, and a startup accelerator program.

13. Newport Beach - located in Orange County, it offers a high-end lifestyle, a sea-port, and a shopping district.

14. Oakland - located in the San Francisco Bay Area, it offers affordable office space, a diverse community, and a startup incubator program. Oakland offers Tax incentives for companies that create new jobs.

15. Pasadena - located in Los Angeles County, it offers a historic and picturesque downtown, a thriving cultural and arts industry, and a competitive office rental market.

16. Riverside - located in the Inland Empire, it offers a low cost of living and doing business, a growing healthcare sector, and a strategic location along major highways.

17. Sacramento - the state capital, offers a diverse business environment, a growing technology sector, and a supportive state government.

18. San Francisco - located in the San Francisco Bay Area, it offers a vibrant startup ecosystem, a world-renowned culture, and access to VC funding.

19. San Jose - located in the Silicon Valley, it offers a high-tech hub, a venture capital network, and a skilled and diverse workforce.

20. Santa Monica - located in Los Angeles County, it offers a beach town atmosphere, a creative and media industry, and a thriving coworking scene.

Conclusion

Starting a business in California is no small feat.

With high rents, taxes, regulations, and competition, entrepreneurs need to carefully choose the location for their venture.

The top 20 towns above offer a combination of factors that make them attractive to new businesses, such as affordable real estate, a skilled workforce, tax incentives, proximity to major markets and transportation, and a supportive local government.

However, entrepreneurs should do their own research, visit the towns, and talk to other business owners and experts before making a decision. Starting a business requires not only a good location but also a viable business plan, a competent team, and a lot of hard work.