WalletHub considered the ecosystem, as local entrepreneurs call it, within 100 cities related to access to resources. It took into account access to financing, venture capital investment per capita, and the prevalence of investors. Other considerations included the availability of human capital, the quality of local colleges and universities, the share of the population who is college-educated, and the growth rate of the working age population.
Irvine was the city with the most educated population. About 69 percent of its 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 make up for Irvine’s No. 97 placement on the list for business costs, ranking less expensive only than San Francisco (the most expensive city to do business) and nearby Silicon Valley cities Fremont and San Jose.
Irvine was the No. 20 overall city out of the country’s 100 largest cities for a place to open a business. It was the only California city ranked within the top 20.
The rest of the Top 20 list of places to open a business were dominated by cities in the southeastern states such as Texas, North Carolina and Florida.
Other California cities in the top one-third of WalletHub’s list included Long Beach, Fresno, Oakland and Stockton.
San Francisco ranked best in the business environment category, but worst in the business costs section, which includes costs of labor and office rent.
The No. 1 city on the list for overall best place to open a new business was Laredo, Texas.
