Best Places to Start a Business in California (Hint…It’s Not Just L.A. or S.F.)

You don’t need a San Francisco zip code to build a winning business in California. Across the state, mid-sized cities offer better costs, talent access, and room to grow. This guide uncovers the top emerging spots worth your attention.
best places to start a business

When it comes to launching a business in California, the spotlight often shines on Los Angeles and San Francisco. However, the Golden State is dotted with numerous other cities that offer fertile ground for entrepreneurs. From burgeoning tech hubs to communities with supportive local governments, here are some of the best places to start a business in California beyond the usual suspects.

Irvine

Located in Orange County, Irvine boasts a master-planned layout, top-tier infrastructure, and a strong economy. The city is home to a cluster of tech companies and benefits from proximity to the University of California, Irvine, providing a steady stream of talent. With a business-friendly environment and numerous coworking spaces, Irvine stands out as one of the best places to start a business for startups and established businesses alike.


Irvine Chamber of Commerce

Sacramento

As the state capital, Sacramento offers unique advantages, including access to government
contracts and a growing tech scene. The cost of living and doing business is lower compared to
coastal cities, and initiatives like the Urban Technology Lab provide support for innovation. The
city’s diverse economy and revitalized downtown make it a compelling choice for entrepreneurs.​


City of Sacramento Economic Development

Fresno

Fresno, situated in the heart of the Central Valley, is experiencing economic growth and
diversification. Traditionally known for agriculture, the city is now attracting businesses in
sectors like healthcare, education, and logistics. Affordable real estate and a central location
make Fresno a strategic base for companies looking to serve the broader California market.​

Fresno Economic Development Corporation

Carlsbad

Carlsbad, in San Diego County, combines coastal charm with a robust business environment.
The city hosts a range of industries, including biotechnology, information technology, and
manufacturing. With quality infrastructure, a skilled workforce, and a high quality of life,
Carlsbad is an appealing location for entrepreneurs seeking a balance between work and
lifestyle.​


Carlsbad Chamber of Commerce

Santa Rosa

Located in Sonoma County, Santa Rosa offers a unique blend of wine country appeal and
economic opportunity. The city supports small businesses through various programs and has a
growing healthcare and tech sector. Its proximity to the Bay Area, coupled with a lower cost of
living, makes Santa Rosa an attractive alternative for startups.​


Santa Rosa Economic Development

Riverside

Riverside is part of the Inland Empire, one of the fastest-growing regions in California. The city
has invested in infrastructure and offers incentives for businesses, particularly in logistics,
manufacturing, and healthcare. With a young and diverse population, Riverside provides a
dynamic environment for new ventures.​


Riverside Economic Development Agency

Chula Vista

As the second-largest city in San Diego County, Chula Vista is experiencing rapid growth. The
city offers business incentives and has a strategic location near the United States and Mexico

border, facilitating international trade. Emerging sectors include clean energy, technology, and
tourism, providing diverse opportunities for entrepreneurs.​


City of Chula Vista Economic Development

Burbank

Known as the “Media Capital of the World,” Burbank hosts major entertainment companies like
Warner Bros. and Disney. Beyond media, the city supports a range of industries and offers
resources for small businesses, including streamlined permitting processes and access to
funding. Burbank’s vibrant economy and supportive community make it a strong contender for
business startups.​


Burbank Economic Development

Santa Clarita

Santa Clarita offers a combination of business-friendly policies, quality infrastructure, and a high
standard of living. The city has a diverse economy, with strengths in aerospace, manufacturing,
and digital media. Programs like the Santa Clarita Business Incubator provide support for
startups, making it an attractive location for entrepreneurs.​


Santa Clarita Economic Development

Ventura

Ventura, located along the Central Coast, offers a relaxed lifestyle with a growing business
community. The city supports small businesses through various initiatives and has a burgeoning
tech and creative sector. Affordable office spaces and a collaborative environment make
Ventura an appealing choice for new ventures.​


Ventura Chamber of Commerce

Final Thoughts

California’s entrepreneurial landscape extends far beyond Los Angeles and San Francisco. Cities like Irvine, Sacramento, and Fresno offer unique advantages, from lower costs to supportive local governments. These cities are among the best places to start a business for entrepreneurs seeking the right environment to launch and grow their businesses.

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