The Polish capital beat out most other major European cities in a ranking of entrepreneurs’ favorite cities in which to do business.

Warsaw came in third in the ECER-Banque Populaire city ranking 2010, beating Berlin, Vienna and Brussels – and jumping 10 places from the previous year. German cities dominated the rankings, taking four of the top 10 spots.

Source: ECER - Banque Populaire

Warsaw ranked highly because entrepreneurs said credit was relatively easy to obtain and employment regulations were flexible.

The Polish Information and Foreign Investment Agency welcomed the news, but was unsurprised. “We have been witnessing a growth in foreign interest for a couple of years now,” said Rafał Szajewski, an investment specialist at the agency.

As to the reasons for the high ranking, Mr Szajewski said that perhaps the most important factor was the high level of state aid for investors. He explained that aid in the Polish capital can be higher than in other European capitals.

Also of note, said Mr Szajewski, was Warsaw’s efficient infrastructure for business and its large base of students, numbering 285,000.