Five cities in Iowa made Forbes’ “America’s Best Small Cities for Business and Careers”, with Iowa City taking the number two spot on the list.  Iowa City’s strong showing was traced to its well-educated labor force since it is home to the University of Iowa, where 47% of adults have a college degree, the third-highest among small metros.

The list by Forbes was comprised of smaller cities that offer low business costs and strong employment prospects.

From Forbes.com:

Iowa was the clear standout in the ranking with five metros in the top 20 including Iowa City, which ranked No. 2 (Des Moines nabbed the top spot on out the list of bigger metros). Other leading Iowa metros include No. 13 Waterloo, No. 14 Sioux City, No. 15 Dubuque and No. 17 Ames. They share some similar characteristics like business costs at least 16% below the national average and crime rates that fare at least 16% lower. These metros are all home to top-ranked colleges that churn out a steady crop of highly educated labor. Employment in Dubuque is expected to increase 4.2% annually over the next three years, better than any other metro area (big or small) in the country

Read the full article:

http://www.forbes.com/2010/09/13/best-small-cities-for-business-beltway-best-small-cities.html