California · best for small business · #50 of 50 states

Best Cities for Small Business in California

California ranks #50 of 50 for small business, with a small business score of 26.8. El Dorado Hills is its best city for small business at 76.2.

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#1 city in CA for small business

El Dorado Hills76.2

Small Business score out of 100

California, all states: #50 of 50
Population: 51,026

Open El Dorado Hills →

Tax burden

11%

% of income

Fiscal health

48/100

GDP + debt + reserves

Pop. growth

-0.02%

Census estimates

Unemployment

5.5%

BLS LAUS

Economy score

42/100

Income + jobs + growth

What Small Business Should Know About California

California ranks #50 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 48/100 is adequate, though fiscal conditions aren't a standout advantage.

Tax policy directly impacts the bottom line. California's overall tax burden is 11% of income, with a 14.4% income tax rate that applies to both personal and pass-through business income. The 8.99% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 42/100) with 5.5% unemployment suggests a larger available workforce, which can ease hiring pressures.

Declining population (-0.02%) is a headwind for customer-dependent businesses, though it can reduce competition. Workforce quality may require investment in training — the education score of 52/100 suggests gaps in preparation. A typical home value of $764,158 is expensive enough that employee compensation expectations may be higher.

All 188 Cities Ranked for Small Business

# City	Grade	Small Business score	Overall	Household finances	Economy	Growth	Population
1El Dorado Hills	A	76.2	64.2	99	100	—	51,026
2Folsom	A+	73.7	68.0	91	80	82	83,916
3Palo Alto	A+	73.4	70.9	94	86	48	67,237
4Castro Valley	B+	72.3	62.1	90	94	—	65,001
5Sunnyvale	A+	72.2	69.3	95	88	50	154,236
6Santa Clara	A+	70.8	68.1	90	87	50	130,256
7Dublin	A	70.6	66.5	97	82	58	70,803
8Cupertino	A+	70.0	68.3	98	84	42	58,566
9San Mateo	A+	69.2	67.1	90	87	47	103,105
10Mountain View	A	68.5	65.1	94	88	44	83,732
11Encinitas	A	67.4	65.1	92	87	38	61,480
12Redwood City	A	67.4	64.0	94	87	39	82,447
13Newport Beach	A	67.3	64.8	93	87	34	83,845
14Rocklin	A	66.9	64.8	84	72	58	73,327
15San Ramon	A	66.9	64.5	97	82	41	85,993
16Fremont	A	66.6	64.2	96	83	39	228,295
17Roseville	A	66.5	63.6	81	71	64	155,955
18Livermore	A	66.5	63.2	97	85	35	85,522
19Pleasanton	A	66.3	65.2	96	83	33	76,960
20Laguna Niguel	A	66.3	64.1	90	81	43	64,139
21San Francisco	A	66.1	64.1	81	81	47	830,235
22Eastvale	B+	65.9	60.5	97	85	38	70,633
23South San Francisco	B+	65.6	62.8	87	81	49	64,305
24Aliso Viejo	A	65.4	63.6	93	83	33	51,113
25Yorba Linda	B+	65.0	62.9	95	86	34	67,170
26San Jose	B+	64.5	59.7	89	81	42	990,138
27San Clemente	B+	64.1	62.1	91	81	33	63,273
28Elk Grove	A	63.9	63.3	80	71	51	179,155
29Mission Viejo	B+	63.5	62.2	89	78	33	92,151
30Redondo Beach	B+	63.5	60.7	96	79	28	69,291
31Irvine	A	63.2	63.4	80	78	44	311,690
32Carlsbad	B+	63.1	61.2	90	80	31	114,373
33Placentia	B+	63.1	60.3	76	70	61	52,826
34Lake Forest	B+	63.0	61.9	83	79	38	86,281
35Milpitas	B	62.5	58.6	95	82	37	78,578
36Alameda	B+	62.2	59.9	87	75	33	77,238
37Daly City	B+	62.1	62.0	80	75	44	101,964
38Thousand Oaks	B+	61.8	62.3	83	77	29	125,205
39Gilroy	B	61.8	56.0	86	72	51	59,004
40Brentwood	B	61.5	57.3	87	77	44	65,208
41Lincoln	B	61.5	56.8	76	66	61	52,956
42Temecula	B	61.2	56.6	80	68	54	111,167
43Petaluma	B+	61.0	61.4	79	69	45	59,247
44Walnut Creek	B+	60.6	59.1	85	74	35	70,088
45Beaumont	B	60.4	56.9	68	61	60	56,266
46Simi Valley	B+	60.3	59.9	82	71	36	125,634
47Huntington Beach	B+	60.0	60.0	79	72	35	195,240
48Costa Mesa	B	59.9	58.2	72	70	41	110,330
49Tracy	B	59.6	57.1	79	66	52	96,966
50Union City	B	59.5	57.5	85	75	33	67,464
51Murrieta	B	59.5	55.9	80	64	46	112,064
52Orange	B+	59.4	59.4	74	70	41	138,266
53Chino Hills	B	58.6	57.0	81	74	38	77,927
54Rancho Cucamonga	B	58.2	55.8	74	66	45	175,411
55Rancho Cordova	B	58.1	57.8	57	53	69	81,849
56Fountain Valley	B+	57.8	59.0	76	67	34	56,258
57Hacienda Heights	C+	57.6	54.1	67	65	—	54,291
58Chino	C+	57.6	53.3	71	62	56	92,652
59Novato	B+	57.1	59.6	73	67	35	52,546
60Redlands	B	57.1	56.4	69	63	40	73,375
61San Diego	B	57.0	57.0	67	64	43	1,389,526
62Lakewood	C+	57.0	54.9	81	65	31	79,850
63San Rafael	B	56.9	58.0	71	73	35	60,433
64Clovis	B	56.9	57.0	69	58	42	124,725
65Fontana	C+	56.9	55.5	67	59	46	214,169
66Berkeley	B	56.8	57.1	55	64	49	120,257
67Vacaville	B	56.8	56.9	74	63	36	102,596
68Tustin	B	56.7	57.3	71	69	35	78,981
69Santa Clarita	B	56.7	55.8	80	66	33	230,221
70Santa Rosa	B	56.5	58.0	65	60	47	177,090
71Arcadia	B	56.4	57.8	74	64	33	55,170
72San Buenaventura (Ventura)	B	56.2	56.8	66	63	41	109,857
73Corona	C+	56.2	53.3	72	65	40	159,670
74Torrance	B	56.0	56.3	76	65	30	142,130
75Buena Park	B	56.0	55.9	72	67	36	82,871
76Santa Ana	B	55.8	55.8	61	60	44	312,534
77Upland	C+	55.5	54.5	69	64	37	79,257
78Santa Barbara	C+	55.4	55.4	61	70	38	87,779
79Glendora	B	55.3	55.9	76	62	29	50,926
80South Whittier	C	55.3	50.4	65	57	—	55,650
81Lake Elsinore	C	55.2	51.9	67	58	51	72,461
82Hayward	C+	55.1	53.4	72	65	38	158,801
83West Sacramento	B	54.9	57.0	57	54	46	54,927
84Manteca	C+	54.9	53.5	65	52	60	89,043
85Chula Vista	C+	54.8	54.7	71	62	34	276,375
86Concord	C+	54.8	52.7	72	65	37	124,035
87Camarillo	B	54.7	56.2	74	68	28	70,186
88Santa Monica	C+	54.7	54.3	70	60	30	91,169
89Covina	C+	54.5	55.5	67	55	38	49,888
90Napa	C+	54.3	53.5	71	64	34	78,239
91San Marcos	C	54.2	51.9	71	67	35	94,882
92La Habra	C+	54.0	55.6	64	63	36	61,970
93Menifee	C	53.8	51.8	63	53	53	110,305
94Carson	C	53.5	52.3	72	58	30	92,871
95Oceanside	C+	53.3	53.2	68	59	37	172,242
96Vista	C+	53.2	55.7	62	59	33	99,114
97San Leandro	C+	53.2	52.8	69	60	32	87,826
98Woodland	B	53.0	57.1	64	43	35	61,854
99Jurupa Valley	C	52.9	52.4	62	57	33	107,011
100Santa Cruz	C+	52.7	55.6	59	66	26	61,607
101Garden Grove	C+	52.5	55.6	58	58	37	170,964
102Ontario	C	52.4	52.4	56	54	45	180,547
103Santee	D	52.1	48.8	75	66	28	59,332
104Fullerton	C+	52.0	53.8	63	63	33	140,968
105Pasadena	C+	51.9	53.5	61	58	32	136,969
106West Covina	C+	51.8	54.1	66	57	28	107,037
107Norwalk	C+	51.8	53.2	67	55	26	99,789
108Fairfield	C	51.8	51.1	66	58	38	120,785
109Diamond Bar	C+	51.7	54.1	69	61	30	53,355
110Pittsburg	C	51.6	50.1	63	56	44	76,257
111Anaheim	C	51.5	52.0	59	60	36	344,521
112Citrus Heights	C+	51.2	54.3	60	50	34	86,995
113Oxnard	C	51.1	51.5	62	53	34	200,928
114Yucaipa	C	50.9	50.5	63	55	43	54,421
115Escondido	C+	50.8	53.2	58	58	28	149,668
116Rialto	D	50.7	48.5	56	49	46	104,143
117Perris	D	50.6	48.8	59	48	43	80,511
118Sacramento	C+	50.5	52.6	53	52	40	528,706
119Riverside	C	50.5	49.0	57	54	37	319,069
120Whittier	C	50.4	51.2	66	53	30	86,165
121Oakland	D	50.4	46.3	60	59	40	439,418
122Downey	C	50.3	51.7	63	53	30	110,939
123Moreno Valley	C	50.2	49.1	59	50	36	211,666
124Carmichael	C	50.1	52.0	54	44	—	76,948
125Alhambra	C+	49.9	54.7	55	51	32	81,022
126Turlock	C+	49.6	53.1	56	44	34	72,502
127La Mesa	C	49.6	51.3	60	59	31	60,797
128Palm Desert	C	49.1	51.3	54	41	40	51,990
129Westminster	C	48.7	52.4	51	52	35	89,860
130Richmond	D	48.7	47.2	57	56	36	115,505
131Visalia	C	48.5	50.5	55	43	35	143,939
132Cathedral City	C	48.4	50.9	48	43	33	52,267
133Lodi	C	48.4	50.3	56	44	37	67,607
134Monterey Park	C+	48.2	52.8	53	50	30	59,132
135Burbank	C	48.2	50.7	63	45	27	104,546
136Montebello	C	48.1	49.5	53	47	38	61,045
137Glendale	C	48.0	51.7	55	49	31	190,748
138Davis	B	47.8	57.6	30	57	36	66,978
139Redding	C	47.8	50.2	45	44	42	93,409
140Indio	C	47.5	49.0	53	41	35	91,950
141Pico Rivera	D	47.3	47.9	60	48	28	60,272
142Antioch	D	47.3	43.8	62	53	41	116,477
143Baldwin Park	C	47.2	50.6	50	46	31	70,138
144Gardena	D	47.0	48.0	55	48	30	59,422
145Highland	D	46.9	48.4	42	45	46	56,675
146Hanford	C	46.4	50.8	47	28	42	59,754
147Rosemead	C	45.9	49.8	47	46	34	50,013
148Bakersfield	D	45.8	47.4	45	40	39	411,986
149Vallejo	D	45.8	45.3	57	51	33	124,268
150Paramount	D	45.5	47.1	50	43	27	52,050
151Colton	D	45.4	48.2	46	42	31	53,772
152San Jacinto	D	45.2	46.4	46	41	37	55,180
153Long Beach	D	45.2	45.8	51	49	34	455,548
154Arden-Arcade	C	45.1	50.0	43	37	—	94,994
155Santa Maria	D	45.1	47.8	45	41	36	110,462
156Bellflower	D	45.1	47.8	50	45	26	76,819
157Los Angeles	D	45.1	47.4	45	45	34	3,857,263
158South Gate	D	45.1	46.4	49	45	31	91,483
159Pomona	D	44.9	46.0	48	44	36	147,943
160El Monte	D	44.4	48.7	38	42	38	106,109
161Modesto	D	44.4	47.1	50	39	29	219,215
162National City	D	43.7	47.4	42	41	31	58,893
163Tulare	D	43.6	46.3	39	32	44	70,945
164Chico	D	43.1	48.5	27	42	48	102,188
165Lynwood	D	41.9	43.2	40	41	33	64,578
166Fresno	D	41.8	45.5	34	35	33	545,970
167Hesperia	D	41.1	43.3	40	37	36	100,775
168Hawthorne	D	41.1	43.2	45	44	27	85,191
169Stockton	D	40.8	42.6	46	35	30	322,326
170Yuba City	D	40.6	48.5	47	24	24	69,471
171Lancaster	F	40.6	40.6	47	36	37	169,169
172San Bernardino	F	40.4	41.2	35	38	33	222,724
173Inglewood	F	40.2	41.3	45	39	24	104,569
174Salinas	D	40.1	44.7	55	27	17	161,761
175Hemet	F	40.1	42.3	38	26	37	91,326
176East Los Angeles	F	39.5	40.9	38	29	—	111,647
177Huntington Park	D	39.3	43.2	33	39	27	53,108
178Compton	F	39.2	39.2	41	40	25	92,698
179Palmdale	F	39.1	41.3	47	39	27	164,634
180Apple Valley	F	38.4	41.4	40	34	29	75,473
181El Cajon	D	38.2	44.0	32	43	26	104,449
182Watsonville	D	37.7	44.9	47	19	15	51,712
183Victorville	F	37.6	38.6	39	34	33	137,627
184Florence-Graham	F	35.6	37.9	31	26	—	60,690
185Delano	D	35.5	43.4	40	14	6	51,679
186Merced	F	35.3	42.1	24	22	32	91,953
187Madera	D	35.0	43.6	21	21	24	67,831
188Porterville	F	33.5	41.8	35	11	15	63,157

City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.

Compare: States with Similar Small Business Rankings

Also See: California for Other Lifestyles

Frequently Asked Questions

Is California a good state for small business?

California ranks #50 out of 50 for small business with a persona-weighted score of 26.8/100. Its strongest relevant category is Safety (55/100) and its weakest is Growth (6/100).

What is the best city for small business in California?

El Dorado Hills ranks #1 in California for small business with a score of 76.2/100, followed by Folsom and Palo Alto.

What factors are most important for small business in California?

Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.

# City

Grade

Small Business score

Overall

Household finances

Economy

Growth

Population

1El Dorado Hills

76.2

64.2

100

—

51,026

2Folsom

A+

73.7

68.0

83,916

3Palo Alto

A+

73.4

70.9

67,237

4Castro Valley

B+

72.3

62.1

—

65,001

5Sunnyvale

A+

72.2

69.3

154,236

6Santa Clara

A+

70.8

68.1

130,256

7Dublin

70.6

66.5

70,803

8Cupertino

A+

70.0

68.3

58,566

9San Mateo

A+

69.2

67.1

103,105

10Mountain View

68.5

65.1

83,732

11Encinitas

67.4

65.1

61,480

12Redwood City

67.4

64.0

82,447

13Newport Beach

67.3

64.8

83,845

14Rocklin

66.9

64.8

73,327

15San Ramon

66.9

64.5

85,993

16Fremont

66.6

64.2

228,295

17Roseville

66.5

63.6

155,955

18Livermore

66.5

63.2

85,522

19Pleasanton

66.3

65.2

76,960

20Laguna Niguel

66.3

64.1

64,139

21San Francisco

66.1

64.1

830,235

22Eastvale

B+

65.9

60.5

70,633

23South San Francisco

B+

65.6

62.8

64,305

24Aliso Viejo

65.4

63.6

51,113

25Yorba Linda

B+

65.0

62.9

67,170

26San Jose

B+

64.5

59.7

990,138

27San Clemente

B+

64.1

62.1

63,273

28Elk Grove

63.9

63.3

179,155

29Mission Viejo

B+

63.5

62.2

92,151

30Redondo Beach

B+

63.5

60.7

69,291

31Irvine

63.2

63.4

311,690

32Carlsbad

B+

63.1

61.2

114,373

33Placentia

B+

63.1

60.3

52,826

34Lake Forest

B+

63.0

61.9

86,281

35Milpitas

62.5

58.6

78,578

36Alameda

B+

62.2

59.9

77,238

37Daly City

B+

62.1

62.0

101,964

38Thousand Oaks

B+

61.8

62.3

125,205

39Gilroy

61.8

56.0

59,004

40Brentwood

61.5

57.3

65,208

41Lincoln

61.5

56.8

52,956

42Temecula

61.2

56.6

111,167

43Petaluma

B+

61.0

61.4

59,247

44Walnut Creek

B+

60.6

59.1

70,088

45Beaumont

60.4

56.9

56,266

46Simi Valley

B+

60.3

59.9

125,634

47Huntington Beach

B+

60.0

195,240

48Costa Mesa

59.9

58.2

110,330

49Tracy

59.6

57.1

96,966

50Union City

59.5

57.5

67,464

51Murrieta

59.5

55.9

112,064

52Orange

B+

59.4

138,266

53Chino Hills

58.6

57.0

77,927

54Rancho Cucamonga

58.2

55.8

175,411

55Rancho Cordova

58.1

57.8

81,849

56Fountain Valley

B+

57.8

59.0

56,258

57Hacienda Heights

C+

57.6

54.1

—

54,291

58Chino

C+

57.6

53.3

92,652

59Novato

B+

57.1

59.6

52,546

60Redlands

57.1

56.4

73,375

61San Diego

57.0

1,389,526

62Lakewood

C+

57.0

54.9

79,850

63San Rafael

56.9

58.0

60,433

64Clovis

56.9

57.0

124,725

65Fontana

C+

56.9

55.5

214,169

66Berkeley

56.8

57.1

120,257

67Vacaville

56.8

56.9

102,596

68Tustin

56.7

57.3

78,981

69Santa Clarita

56.7

55.8

230,221

70Santa Rosa

56.5

58.0

177,090

71Arcadia

56.4

57.8

55,170

72San Buenaventura (Ventura)

56.2

56.8

109,857

73Corona

C+

56.2

53.3

159,670

74Torrance

56.0

56.3

142,130

75Buena Park

56.0

55.9

82,871

76Santa Ana

55.8

312,534

77Upland

C+

55.5

54.5

79,257

78Santa Barbara

C+

55.4

87,779

79Glendora

55.3

55.9

50,926

80South Whittier

55.3

50.4

—

55,650

81Lake Elsinore

55.2

51.9

72,461

82Hayward

C+

55.1

53.4

158,801

83West Sacramento

54.9

57.0

54,927

84Manteca

C+

54.9

53.5

89,043

85Chula Vista

C+

54.8

54.7

276,375

86Concord

C+

54.8

52.7

124,035

87Camarillo

54.7

56.2

70,186

88Santa Monica

C+

54.7

54.3

91,169

89Covina

C+

54.5

55.5

49,888

90Napa

C+

54.3

53.5

78,239

91San Marcos

54.2

51.9

94,882

92La Habra

C+

54.0

55.6

61,970

93Menifee

53.8

51.8

110,305

94Carson

53.5

52.3

92,871

95Oceanside

C+

53.3

53.2

172,242

96Vista

C+

53.2

55.7

99,114

97San Leandro

C+

53.2

52.8

87,826

98Woodland

53.0

57.1

61,854

99Jurupa Valley

52.9

52.4

107,011

100Santa Cruz

C+

52.7

55.6

61,607

101Garden Grove

C+

52.5

55.6

170,964

102Ontario

52.4

180,547

103Santee

52.1

48.8

59,332

104Fullerton

C+

52.0

53.8

140,968

105Pasadena

C+

51.9

53.5

136,969

106West Covina

C+

51.8

54.1

107,037

107Norwalk

C+

51.8

53.2

99,789

108Fairfield

51.8

51.1

120,785

109Diamond Bar

C+

51.7

54.1

53,355

110Pittsburg

51.6

50.1

76,257

111Anaheim

51.5

52.0

344,521

112Citrus Heights

C+

51.2

54.3

86,995

113Oxnard

51.1

51.5

200,928

114Yucaipa

50.9

50.5

54,421

115Escondido

C+

50.8

53.2

149,668

116Rialto

50.7

48.5

104,143

117Perris

50.6

48.8

80,511

118Sacramento

C+

50.5

52.6

528,706

119Riverside

50.5

49.0

319,069

120Whittier

50.4

51.2

86,165

121Oakland

50.4

46.3

439,418

122Downey

50.3

51.7

110,939

123Moreno Valley

50.2

49.1

211,666

124Carmichael

50.1

52.0

—

76,948

125Alhambra

C+

49.9

54.7

81,022

126Turlock

C+

49.6

53.1

72,502

127La Mesa

49.6

51.3

60,797

128Palm Desert

49.1

51.3

51,990

129Westminster

48.7

52.4

89,860

130Richmond

48.7

47.2

115,505

131Visalia

48.5

50.5

143,939

132Cathedral City

48.4

50.9

52,267

133Lodi

48.4

50.3

67,607

134Monterey Park

C+

48.2

52.8

59,132

135Burbank

48.2

50.7

104,546

136Montebello

48.1

49.5

61,045

137Glendale

48.0

51.7

190,748

138Davis

47.8

57.6

66,978

139Redding

47.8

50.2

93,409

140Indio

47.5

49.0

91,950

141Pico Rivera

47.3

47.9

60,272

142Antioch

47.3

43.8

116,477

143Baldwin Park

47.2

50.6

70,138

144Gardena

47.0

48.0

59,422

145Highland

46.9

48.4

56,675

146Hanford

46.4

50.8

59,754

147Rosemead

45.9

49.8

50,013

148Bakersfield

45.8

47.4

411,986

149Vallejo

45.8

45.3

124,268

150Paramount

45.5

47.1

52,050

151Colton

45.4

48.2

53,772

152San Jacinto

45.2

46.4

55,180

153Long Beach

45.2

45.8

455,548

154Arden-Arcade

45.1

50.0

—

94,994

155Santa Maria

45.1

47.8

110,462

156Bellflower

45.1

47.8

76,819

157Los Angeles

45.1

47.4

3,857,263

158South Gate

45.1

46.4

91,483

159Pomona

44.9

46.0

147,943

160El Monte

44.4

48.7

106,109

161Modesto

44.4

47.1

219,215

162National City

43.7

47.4

58,893

163Tulare

43.6

46.3

70,945

164Chico

43.1

48.5

102,188

165Lynwood

41.9

43.2

64,578

166Fresno

41.8

45.5

545,970

167Hesperia

41.1

43.3

100,775

168Hawthorne

41.1

43.2

85,191

169Stockton

40.8

42.6

322,326

170Yuba City

40.6

48.5

69,471

171Lancaster

40.6

169,169

172San Bernardino

40.4

41.2

222,724

173Inglewood

40.2

41.3

104,569

174Salinas

40.1

44.7

161,761

175Hemet

40.1

42.3

91,326

176East Los Angeles

39.5

40.9

—

111,647

177Huntington Park

39.3

43.2

53,108

178Compton

39.2

92,698

179Palmdale

39.1

41.3

164,634

180Apple Valley

38.4

41.4

75,473

181El Cajon

38.2

44.0

104,449

182Watsonville

37.7

44.9

51,712

183Victorville

37.6

38.6

137,627

184Florence-Graham

35.6

37.9

—

60,690

185Delano

35.5

43.4

51,679

186Merced

35.3

42.1

91,953

187Madera

35.0

43.6

67,831

188Porterville

33.5

41.8

63,157