Startup companies in Los Angeles, Orange County and the Inland Empire have greatly contributed to the region’s diverse economy.
Inc. Magazine’s latest list of the 5,000 fastest-growing companies in the United States included 296 businesses in Los Angeles and Orange County, ranking the metro area third in the country.
When adding the 41 startups in neighboring Ventura County and the Inland Empire, the region accounted for approximately half of the 670 California companies listed.
Entrepreneurship in the region is strong, according to the survey.
No particular industry exceeds 10% of local market share, highlighting Southern California’s diverse economy.
Advertising and marketing represented the largest sector, followed by software and app developers, business products and services, financial services and IT.
Companies were ranked by three-year revenue growth. The median year local companies were founded was 2007.
Startups are spread across the region, 133 companies operating in submarkets ranging from the South Bay to the San Fernando Valley.
L.A.-based ice cream manufacturer and retailer Halo Top Creamery led all companies in L.A. County while ranking fifth nationally on Inc.’s list.
Orange County hosts 115 company headquarters led by Costa Mesa-based Club Pilates Franchiser, which is in fourth place nationally.
The Inland Empire is home base to 25 companies, Temecula-based merchant payment processor National Merchants Association at the top and ranking 196 nationally.
Key takeaway: The diverse Southern California economy supports growth of companies across many industries and areas, which in turn strengthens market fundamentals and is a buffer against future downturns.
