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34. San Antonio
Population: 1,251,086
Pros: Cultural attractions, talented labor pool
Con: Hot summers

While San Antonio is one of the larger cities on FSB's list, it offers lower living costs than many other metropolitan hubs.

Electricity, water, and property are all relatively cheap in San Antonio. The small business community is thriving (more than 16,000 startups launched in the area last year). Healthcare, technology, and financial services are particularly strong local industries. Government contractors are attracted to the proximity of several military bases, according to David Marquez, executive director of the Bexar County of Economic Development.

Local amusement parks such as Six Flags and Sea World draw a steady stream of tourists each year. Visitors also flock to the Alamo and to the vibrant River Walk, or Paseo del Rio. -Mina Kimes

Interactive map: San Antonio
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NEXT: 35. Cambridge, Mass.

Last updated July 02 2008: 11:16 AM ET
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