Twenty-four years ago, I flew out of Detroit and headed to Northern California for college. I have been in the Bay Area ever since and have spent the past 17 years in private equity, investing in food and consumer products companies.

As part of the Detroit Homecoming conference for expats like me, I had an opportunity to return to Detroit to assess the business climate and to determine whether Detroit is an attractive place for our food-focused private equity fund to invest.

With a few exceptions, food processing has not been a major part of the economy in Southeast Michigan. However, the area is well-positioned to attract food processors. Detroit is in a great location to be cost-competitive because of its proximity to raw materials from the Midwestern farm belt, its ample supply of water resources and its numerous transportation lanes that allow for distribution to both U.S. and Canadian markets. Detroit has always had those advantages, so why is now a better time to attract food processors to the area? I found four signs.

Entrepreneurial culture: When I visited, I expected to see a downtrodden city with a stressed business culture fretting about bankruptcy and additional job losses, but I was absolutely blown away by the optimism from all of the entrepreneurs that I met. I heard from auto parts suppliers, a gluten-free pasta manufacturer and even cab drivers a genuine belief that Detroit is an attractive place to do business.

There is nothing more powerful than an American entrepreneur who is committed to make something happen. I have seen the combination of willpower and talent lead to the creation of successful companies in Silicon Valley for the past 20 years, and I now see a similar unbridled optimism and entrepreneurial environment that is attracting young, smart and driven entrepreneurs to Detroit.

Branding: “Made in Detroit” is a brand advantage. Detroit is hip. This country wants to see Detroit succeed. Look what “Made in Detroit” did for Shinola watches. McClure’s Pickles is seeing a similar benefit by promoting its Detroit roots. Whole Foods opens up a lot of stores each year, but the Detroit location (with a second on its way) is the one that it talks about most often with investors.

Whole Foods wants to buy local from Detroit companies for its Michigan stores, but it also wants those brands to expand to Whole Foods across the country. The products need to meet quality standards and deliver on their brand promises, but Detroit products will be given preferential treatment by both retailers and consumers.

Cost competitiveness: The food-supply chain in this country is incredibly efficient and competitive. A successful company must be cost competitive. Detroit’s labor costs are competitive today. Detroit also has advantages with its low costs of industrial real estate and cheap residential costs that enable food-processing workers to afford a home, which isn’t possible in many parts of the country.

Available resources: From government officials helping companies relocate to Detroit to successful business owners mentoring rookie entrepreneurs, there is a culture of cooperation and assistance that hasn’t always existed in the area. Organizations such as FoodLab Detroit provide guidance and networking opportunities for food industry entrepreneurs.

The biggest growth area in the food industry right now is the natural food industry and better-for-you products. The companies in this sector tend to be entrepreneurial in nature. Detroit is well-positioned to attract these types of companies.

Brian Rudolph, who moved to Detroit from New York to start his chickpea pasta company, Banza, does not need to look very far for inspiration. Up the road in Ferndale, Dave Zilko, who mentors Brian, has helped Garden Fresh Gourmet become the No. 1 fresh salsa company in the United States, proving that food processors can be successful in Southeastern Michigan.

It can happen, Detroit. I am a believer.