Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

2. Los Angeles
2. Los Angeles

Hollywood may grab the headlines, but Los Angeles has more to offer businesses than bright lights and big stars. The city is a hub of innovation. And while the cost of living there puts it in the middle of the pack, the costs of doing business are surprisingly low.

''Even though you would think Los Angeles would be a more expensive city to be in, when you're comparing it to a place like Santiago, or Stockholm, or even Hong Kong, those cities are on a different scale,'' said Merrill Pond of the Partnership for New York City.

Having a central business district helps keep office costs relatively tame, for example, and the city offers good values for a corporate travelers' buck.

Last updated June 02 2011: 8:08 AM ET
Join the Conversation

America's urban areas are home to a host of rising stars. Here's the top 100, as ranked by the Initiative for a Competitive Inner City. More

Americans launched businesses at the highest rate in 15 years in 2009 and 2010. Here are six states with the highest startup rates. More