[BTinSF]

These business magazine lists always do their rankings based on freedom from regulation and taxes--so-called "business friendliness"--not business success or business worthiness. I'll admit that Sacramento (just for example) is a whole lot more business-friendly than the Bay Area and I wish it were otherwise, but the fact remains that the number of highly successful businesses started in the Bay Area greatly exceeds the number in Sacramento (even per capita, I bet). Not being a business person, I can't say exactly what is the attraction, but people remain willing to put up with the ridiculous hassles of a business-unfriendly environment, whether in San Jose, San Francisco or New York City, for a reason--and it works.