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August 26, 2009

Small Business City Profile: San Jose

Steve Viuker

Freelance Writer, Business Insider

Summary

Although it is a booming city, San Jose is still is in the shadows of its more glamorous neighbor, San Francisco. The region is home to more

Although it is a booming city, San Jose is still is in the shadows of its more glamorous neighbor, San Francisco. The region is home to more than 6,400 tech companies, employing about 285,000 people. Green tech businesses are growing at an annual rate of 33% with green employment growing even faster, 41% per year. More than 85% of new job growth in the San Jose region comes from companies less than 10 years old. 

More than 40% of the workforce has a bachelors degree or higher, compared with 25% nationally.  San Jose residents enjoy access to academic institutions such as Stanford University, San Jose State University, and UC Berkeley.

The Cisco Systems San Jose Entrepreneur Center is a partnership between Cisco Systems, the City of San Jose, and a number of national corporations and non-profit organizations. The center provides entrepreneurs with a range of support services-in one convenient location, including financing programs, technical assistance, training, and procurement. 

The cost of living in San Jose is 25% lower than in New York. If your NY salary were $50,000, you would have to earn a salary of $37,700 in San Jose to maintain your current standard of living. On top of that employers in San Jose typically pay 1.6% more than employers in New York City. Therefore, if you take the same type of job in the same type of company in San Jose, you are likely to earn $50,807.  And you would live like a king compared to NY. (Source: salary.com)

However, the plunge in home prices has shoved the value of a growing number of houses in the East Bay and neighboring regions under water, an ominous trend that could unleash a new wave of foreclosures. Depending on the county, anywhere from one-third to two-thirds of East Bay Area homeowners who have mortgages are finding that their houses are worth less than the loans they have on the residences, a condition known as negative equity.  (Source: zillow.com)  Further, California’s budget woes are affecting many cities and counties throughout the state.

Despite real estate-related problems, the city is business-friendly and venture capital is still a valuable source of funding for start-ups and firms looking to relocate.