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San Diego Named Top City For Small Business By Forbes Magazine

Above: A view of the San Diego skyline from across the bay.

San Diego is the best place in the nation to start a small business this year, according to an article appearing in Forbes magazine's website Thursday.

The publication surveyed 50 big cities and evaluated small businesses on the basis of those in high-growth industries, their numbers compared to all business, the percentage that accept credit cards, those with Facebook pages and websites and those found in online reviews.

The categories "evince community engagement and availability of relevant resources," which are more important than a city's job growth and income level, the magazine said. San Diego ranked in the top five in nearly every category.

"It's no secret to San Diego's entrepreneurs and startup community that San Diego is a great place to start a business," Mayor Kevin Faulconer said. "This is just a reminder that we need to continue to foster a fertile environment for small businesses to grow."

He said he hopes the City Council will work with him "to encourage more of America's entrepreneurs and startup community to make San Diego home."

Denver and Austin, Texas, were ranked second and third, respectively, while San Francisco ranked sixth and San Jose 12th.

To compile the rankings, the magazine used information from Radius, a San Francisco technology company that collects small business data in the U.S. and offers a marketing platform to corporate clients selling to that sector.

Overall, Forbes predicted a revitalization of small businesses nationwide.

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Avatar for user 'aztec69'

aztec69 | March 14, 2014 at 5:02 a.m. ― 3 years ago

Flawed research for starters but my point is "So what?" As soon as a local start up gets going it does an IPO and outsiders take control or its bought up by outside corporations who want its ideas or, more probably, want to eliminate a potential competitor. A handful of people might make a killing in the deal but the average employee is back where he started. Look at the bio-med start ups that have disapeared from the scene, along with some high-priced real estate in La Jolla. SAIC is another classic example of a local biggie that left town because the new boss didn't want to bother moving to San Diego.

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Avatar for user 'RichardRider'

RichardRider | March 14, 2014 at 4:40 p.m. ― 3 years ago

It’s great that 3 of the top 12 startup-friendly cities are (supposedly) based in California, with San Diego #1. But gee, that must mean the REST of California must be even worse than the studies indicate. The truth is, this "survey" is the most bogus nonsense I've seen in a legitimate publication. But in fairness, it's just the gonzo opinion of a columnist -- NOT the ranking by Forbes itself.


60% of the "criteria" for this startup business survey uses truly bizarre data:

1. "Percentage of small businesses that accept credit cards."
2. "Percentage of small businesses with Facebook pages and websites."
3. "Percentage of businesses with online reviews."

Gosh, perhaps a more important factor to consider is the chances that a new startup will SURVIVE!


California small businesses failed in 2011 at a rate 69% higher than the national average — the worst state in the nation. (based on Dunn & Bradstreet study)

In 2012, our supply of California businesses shrunk 5.2%. In ONE year. NOTE: That’s a NET figure – 5.2% fewer businesses in CA in 2012 than were here in 2011. Indeed, in 2012, CA lost businesses at a 67.7% higher rate than the 2nd worst state!


CA is NOT a very business friendly state:

CA needlessly licenses more occupations than any state – 177. Second worst state is Connecticut at 155. The average state is 92.

Starting a business that hires employees? Check out the worker compensation rates:
CA has the 3rd highest state workers compensation rates, up from 5th in 2010. CA had a 3.4% rate increase in 2013. and

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