Pacifica ranked worst for business, residents aren't buying it
WalletHub’s latest ranking has declared Pacifica, California, the worst small city in the nation for starting a Business—a judgment met with a distinctly laid-back response from its residents.
A coastal town unfazed by the numbers
The study, which evaluated 1,334 cities with populations between 25,000 and 100,000, identified St. George, Utah, as the top locale for entrepreneurial endeavors, citing favorable Business environments and accessible resources. But Pacifica, nestled along the dramatic California coastline, appears to be operating on a different wavelength.
“There’s some truth to that,” admits Robby Bancroft, proprietor of The Shore Shack, a local restaurant. “Pacifica is isolated, and it’s probably the least hospitable place for a startup or a tech company, frankly. But a small-town eatery? It's practically built for it.” Bancroft, along with his father, opened the restaurant just five months ago – a calculated risk, he insists, driven by a deep affection for his hometown.
“It’s like a dream come true,” Bancroft says, a genuine warmth in his voice. “You’re literally standing in something we’ve fostered, something we envisioned. I’ve been selected as the 2026 Small Businessperson of the Year for the San Francisco District, which is really something.”
Archie Judan, president of the Pacifica Chamber of Commerce, offers a nuanced perspective. “This city caters to a specific demographic – wealthy CEOs escaping the relentless pace of Palo Alto. They’re not necessarily focused on building a global brand or pursuing an IPO. They’re here to unwind.” Judan estimates roughly 3,000 active businesses operate in Pacifica, suggesting a resilient local economy, one he hopes will strengthen through increased collaboration.
The City Council, led by Councilmember Mary Bier, acknowledges the challenges Pacifica faces. “We’re heavily regulated by state agencies,” Bier explains, referencing sea level rise, fire hazards, and ongoing erosion as constant concerns. “Development isn't exactly welcomed here. We’re dealing with these issues every single day.” She dismisses the ranking as an oversimplification, arguing it fails to capture the complexities of the community’s unique situation.
Despite the assessment, the City is actively working on an Economic Development Workplan. This plan aims to streamline permitting processes, attract new businesses, and provide support to existing ones. “We’re not striving to be the cheapest place to operate,” City Manager Gretchen Heckman clarifies. “We’re focused on cultivating a thriving community – one where businesses can truly belong and succeed.”
While Pacifica’s ranking may be unflattering, Bancroft remains optimistic. “It’s not the best feeling to be labeled ‘worst,’ but it’s a bit of publicity, and I hope it encourages others to come and experience the charm of this quiet beach town.” He urges locals to prioritize spending their dollars locally – a sentiment echoed by the entire community.
The WalletHub report highlights a broader trend: the bottom ten small cities in the Bay Area are all located within the region. Danville, Castro Valley, Saratoga, Belmont, Morgan Hill, Martinez, Brentwood, Los Gatos, and San Carlos all followed Pacifica in the rankings. Walnut Creek, at number 891, stands as the highest-ranked small city in the Bay Area, while Twentynine Palms in San Bernardino County topped the state list at number 160. The City of Pacifica remains steadfast in its commitment to supporting its businesses and residents, prioritizing a vibrant, sustainable community – one that’s uniquely Pacifica.