Why LA is the Best Place to Base Your Startup
The sky is the limit for the creative and innovative minds that thrive and subside in LA county.
The City of Los Angeles
If California were an independent country, it would have the fifth largest economy in the world behind the US, China, Japan, and Germany (https://www.forbes.com/places/ca/#480fdb613fef). The state itself represents 15% of the U.S. economy. Specifically LA County, has many booming industries, including the entertainment industry, but the recent successes are due to one industry: Manufacturing.
Especially where 12,500 establishments employ approximately 350,000 people, Los Angeles County is the ideal climate for a business to thrive. More than half of LA County residents speak a language other than English at home ranging from Spanish, Chinese, Tagalog, Korean, Armenian, Vietnamese, Farsi, Japanese, and Russian. The diverse amount of languages spoken in LA gives the unique location a competitive advantage compared to the same industries across the world. This unique range of diverse potential sprouts from the wide range of capital resources and incentive programs, creative economy, leading 4-year colleges and universities (Caltech, UCLA, USC, etc.) that leads to 1.5 million college graduates. As a leader in higher education and research, LA County is home to 10.2 million individuals with a network of business executives from every country who cultivate ties and understand the culture. With 100 consulates in LA County, it is easy to conduct business with the plethora of domestic or foreign establishments based in LA.
Not only is LA an ideal location for starting your business domestically, it is a great place to start an international business. With two of the largest sea ports in America (LA and Long Beach), the Alameda Corridor rail system and the U.S.’s third most active international cargo airport (LAX), the combined ports accounted for nearly two-thirds of the West Coast’s foreign import cargo and jointly constituted the third largest harbour in the world after Singapore and Hong Kong.
LA County is one of the most dynamic economies in the world due to its fast-paced growth rate, world-renown creative economy, and high-tech industries. From salsa to satellites, films to fashion, televisions to toys, and helicopters to hot tubs, LA has nearly 30,000 manufacturers in a wide range of industries. Los Angeles remains a relatively concentrated center of manufacturing across many product lines, including leather products, textiles, petroleum and coal products, furniture, computer and electronic products, printing and other miscellaneous manufacturing.
In comparison to other major startup hubs (Silicon Valley, New York City, London), it is important to consider what characteristics are most important for startups and tech companies. According to the Los Angeles County Economic Development Corporation (laedc.org), “77% of all site investments today are based on location quality, not cost. And the #1 factor is availability of talent.” With a worker base of nearly 5 million people, LA County is plentiful with a diverse range of skilled workers with a wide range of skills. At 178,500 jobs, LA has more green jobs than other regions in the nation.
LA County is undoubtedly one of the leading developments in emerging industries, providing a foundation for the next generation of knowledge workers. As a hub for investor dollars invested in tech and startups, the support network is increasing from both the public (city agencies and organizations) and private sectors (accelerators and incubators). LA is the largest manufacturing center in the U.S, not only because of its status as the nation’s most diverse and populous county, but also because of its title as the #1 manufacturing capital, employing more than 347,000 people which is more than any other country in the nation. The sky is the limit for the creative and innovative minds that thrive and subside in LA county.