SJ a cellar dweller when it comes to new business startups
Image by Wikimedia Commons
According to a report by WalletHub, multiple cities in the Bay Area are considered among the worst large cities to start a business (ranked 1, best to 100, worst). SJ ranks 99th out of 100. The reason? Sky-high labor costs. KTVU reports.
The personal finance company compared the relative startup opportunities in 100 large cities using metrics, such as the five-year business survival rate, labor costs, and office space affordability.
Out of the 100 large cities, San Jose ranked 99th, only behind Washington, D.C., in the overall ranking of best to worst large cities to start a business.
In 97th place was Fremont, and San Francisco only fared slightly better at 91st place.
Oakland was also among the worst large cities to start a business, ranking 85th in the overall ranking.
Fremont, San Francisco, and San Jose tied dead last for the cities with the best-to-worst labor costs in starting a business, having the highest costs in terms of labor to support businesses.
In this ranking, these cities are also tied with Irvine and Seattle.
Separately, San Francisco tied last for costs of office space, with New York and Washington, D.C.
The cities were reported to have seven times a higher cost compared to the cheapest city, Toledo, Ohio, according to WalletHub's findings.
Other metrics WalletHub looked at were accessible financing, average growth of small businesses, availability of human capital, and work week.
No Bay Area cities were considered to be among the best or worst in those categories.
Additionally, Oakland, Fremont, San Jose, and San Francisco ranked 94th, 96th, 97th, and 100th for business costs respectively. WalletHub determined the business costs' rank by analyzing office space affordability, labor costs, corporate taxes, and cost of living altogether.
However, Fremont did score highly in terms of educated population, ranking fourth, compared to San Bernardino in last place, six times worse, WalletHub said.
San Francisco also scored on the higher end for business environment, placing 26th out of the 100 large cities.
Read the whole thing here.
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