What is California’s best city for small business owners? This spot made top 10

California has the fourth-largest economy in the world — and small businesses play a big role in the state’s success.

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Small businesses account for 99.9% of all companies in the Golden State, with 4.2 million companies providing employment to 7 million people, according to the California Employment Development Department.

GoDaddy’s Small Business Research Lab recently went in search of the most entrepreneurial cities in the United States, ranking areas by how much they boost the job market and economy.

“More small and micro-businesses means more jobs created and greater household income on average, making communities stronger and more vibrant places to live and work — on their own terms,” the research lab said in a June 29 article.

See which city in California supports small businesses the best:

Which California city is best for small businesses?

Only one California city made the GoDaddy Small Business Research Lab’s list of the most entrepreneurial cities in the nation.

Fresno came in sixth place on the top 10 list.

The Central Valley city saw 4% in microbusiness growth in 2026, the lab said, proving that “entrepreneurism is spreading well beyond traditional tech centers in the state.”

The GoDaddy study defined microbusinesses as those with 10 or fewer employees and small businesses those with fewer than 500 employees.

How many people do Fresno companies employ?

In 2022, there were a total of 13,615 small businesses in Fresno collectively employing more than 146,000 people in 2022, according to the most recent data cited in a Smartest Dollar study.

There were 74,598 small businesses in Fresno County in 2022, accounting for 99.95% of all businesses, according to research company Neilsberg.

In 2022, a total of 242,002 Fresno residents 16 or older were employed, “according to the U.S. Census Bureau, with 60% working at small businesses.

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Small businesses paid nearly $6.49 billion in wages annually, equating to 51.7% of Fresno’s total payroll for the entire workforce population.

About 23% of Fresno’s total labor force in Fresno worked in educational services, health care and social assistance industries, Census data showed, while another 11% worked in industries including entertainment, food services and recreation.

What are top 10 entrepreneurial cities in the US?

According to GoDaddy’s Small Business Research Lab, these were the 10 most entrepreneurial cities in the United States:

  1. San Antonio, Texas
  2. Miami
  3. Milwaukee
  4. El Paso, Texas
  5. Portland, Oregon
  6. Fresno
  7. Bronx, New York
  8. Tampa, Florida
  9. Albuquerque, New Mexico
  10. Washington, D.C.

How did GoDaddy come up with its ranking?

The GoDaddy Small Business Research Lab collected its own data by surveying more than 70,000 microbusiness entrepreneurs.

Microbusiness density records are also examined to the quantity and distribution of small businesses, which is then used to compare against a city’s economic trends such as unemployment, job creation and household median income gains.

The lab also reviewed microbusiness industry and commerce including the number of sellers, orders and gross merchandise value.

The U.S. microbusiness activity index provided information on how active and healthy community engagement is with small businesses.

This story was originally published July 28, 2026 at 5:00 AM with the headline “What is California’s best city for small business owners? This spot made top 10.”

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