GOBankingRates Ranks Top U.S. Cities Where Entrepreneurs Thrive

Home » Small Business » Small Business News » GOBankingRates Ranks Top U.S. Cities Where Entrepreneurs Thrive

GOBankingRates Ranks Top U.S. Cities Where Entrepreneurs Thrive

When most people hear the term “startup” it’s common for areas like Silicon Valley to come to mind. That’s why some may be surprised to learn that, when it comes to starting a small business, the U.S. map is filled with cities where entrepreneurs are thriving. Now GOBankingRates (GBR) has released a study ranking the top 20 best cities for new small businesses, including several that aren’t in Northern California.

In order to arrive at their rankings, GOBankingRates look at eight factors that impact startups, such as the rate of new entrepreneurs, the density of startups in a given area, the survival rate for new business, and more. On top of that, other metrics such as the cost of living were also factored in. Much of this info was actually sourced from the 2017 Kauffman Index of Startup Activity, as well as the Index of Main Street Entrepreneurship.

Topping GBR’s list was Austin, Texas. The Lone Star State capital was found to have a new entrepreneur rate of .51%, meaning that percentage of the adult population start businesses each month. Additionally, for every 1,000 business in Austin, 104.5 are startups. Incidentally, although Austin ranked number one overall, it was actually third in both measures called out by GBR. Instead it was number two ranked Miami and number seven ranked Los Angeles that had the highest rate of new entrepreneurs. In both cities approximately 56 out of every 10,000 adults starts a business in a given month. As for startup density, Miami was in first with 107.8 followed by another Floridian city — Orlando, which ranked 10th overall — with 105.5.

Returning to the overall list, Dallas came in third with a 0.37% new entrepreneurship rate and 94.2 startup density, followed by San Diego (0.49% and 95.9) and Denver (0.39% and 92.3). The top 10 was rounded out Phoenix, Arizona; Los Angeles, California; Houston, Texas; Kansas City, Missouri; and Orlando, Florida. With San Diego, L.A., San Fransisco, San Jose, and Riverside all in the top 20, California managed to place the most cities on the list. However GOBankingRates notes that Texas — represented by Austin, Dallas, and Houston — had three cities finish in the top 10.

As we’ve discussed before, studies like this can be helpful in determining what cities are the most small business-friendly and give your startup the best chance to thrive. At the same time this isn’t to say that these are the only locations where you’ll find success. In fact, depending on the market for your business, all or none of these cities may actually be the best option. Because of that, before packing up and moving in pursuit of your entrepreneurial dreams, it may be best to look at your own backyard first.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Ameritrade Survey Finds Many Investors Lack Knowledge of Retirement Accounts

How much do you know about your retirement accounts? Even if you contribute to an employer-sponsored 401(k) or even a traditional IRA, chances are you still might not be familiar with all of the rules, requirements, or fees that come with them. To prove this point, recently Ameritrade interviewed 1,006...

Become a Successful Solopreneur With These Essential Tools

Has there ever been a better time to be an entrepreneur? Between the strong economy, a growing number of sales outlets, and “side hustle” culture abounding, it’s really no wonder that small business optimism reached record levels last year. Speaking of side hustles, a recent development is the the rise...

Federal Reserve Seems Unlikely to Raise Rate This Year

Over the past year, one recurring economic story has revolved around the Federal Reserve. That’s because the central banking system spent 2018 slowly raising interest rates from their historically low levels — much to the dismay of the President. Although that trend was expected to extend into this year, it...