Best Places to Start a Business in the USA
Being a business owner is a reality for over 15 million Americans, and there is no reason you should only dream about it. However, to start a business in the USA, you need to conduct thorough research on numerous points. Among all those topics and building blocks of a new business, location emerges as one of the most important. It is not simply an address; it encompasses vital economic and social factors every prosperous entrepreneurship rests upon.
Relevant government institutions and authorities, like the United States Census Bureau and Bureau of Labor Statistics, will provide you with the most detailed reports. Moreover, dedicated studies and research by WalletHub and Business Insider are also reliable sources of up-to-date information.
Where should you start a business and why
Which state, city, or area you will choose for your business location depends on various factors. Adequate infrastructure and access to a skilled workforce are required to run a new business smoothly. WalletHub conducted a study that focused on three main categories
Business Environment
Access to Resources
Business Costs
While at first glance it may seem the big cities lead in being the best places to start a firm, the third category proves to be crucial for emerging businesses. Most aspiring business owners can afford neither the cost of commercial office space nor labor costs, corporate taxes, and the cost of living the big cities require.
Seattle is a haven for start-ups; they’ve drawn more than a billion USD in venture funding. A young and educated workforce is plentiful.
This important category brings into the spotlight the business-friendliest cities and towns in the USA. Wherever you decide to start a business, you need every advantage you can get. One of them comes in the form of co-working and shared spaces, a concept created to support small businesses.
If you prefer a small town business environment
Most entrepreneurs are concerned about whether they will have adequate access to financing. In that regard, St. Cloud (MN), Florence (AL) and Carbondale (IL) are the most desirable, as opposed to Californian towns Hemet, Menifee, and Perris, which are the least.
If you are considering starting a business and settling down anywhere in Michigan, it will please you to know that WalletHub's study ranked some of the MI towns highly. According to their research, Kentwood has the cheapest office spaces. Office rental usually critically affects every new business. Texas towns have the highest average revenue per business, while Oregon and Colorado towns have the highest number of startups per citizen.
Furthermore, towns in California have the highest availability of human capital, among which lead Calexico, Brawley, El Centro, and Delano. On the other hand, employees are most difficult to find in Harrisburg (PA), Annapolis (MD), and Fredericksburg (VA). At the same time, the Californian workforce is the least educated; the best-educated workers are in Massachusetts.
It all leads to another, logical conclusion. Massachusetts has the highest labor costs, in Lexington, Wellesley, and Potomac. The lowest annual income employees have in Illinois and New Jersey.
Miami's business environment attracts the most startups per capita. It is among the top five best cities to start a business.
All these aspects considered, the highest average growth in small businesses is seen in Salisbury (MD), Carbondale (IL), New Iberia (LA), Gulfport and Biloxi (MS).
If you wish to start a business in a big city
Once you start your business in a new environment, you should create some contacts. The most successful way to do it is to host an event. Hosting events helps small businesses reach and engage their customers and establish their brand. This is easier to do in big cities, and Orlando and Miami, (FL), Seattle (WA), Oklahoma City (OK), and Austin (TX) are the leaders. Hence, it doesn't come as a surprise that New York and Los Angeles are at the bottom of the list. They are the least affordable due to the high costs that burden business owners. However, one of the disadvantages of the "big five" is their low availability of human resources. It doesn't mean that the five abovementioned big cities top the chart because they excel in every measured category. They are marked the best to start a business due to their overall ranking.
Next to Orlando, the highest average growth in the number of small businesses studies record in North Carolina's Charlotte and Winston-Salem, and Texas' Austin, Dallas, and Fort Worth. On the contrary, Honolulu (HI), Memphis (TN), and Cleveland (OH) are not attractive to entrepreneurs.
Austin, the capital of Texas, is a hotspot for many reasons. Lack of personal income tax and corporate tax makes Texas and its cities attractive to employers and self-employed business owners. Austin is affordable and supportive of small businesses. Additionally, it has talented, educated, and creative job seekers in abundance.
The absence of corporate and personal income tax is one of the aspects that rank Austin in the top five cities for entrepreneurs. The presence of a well-educated, innovative and diligent workforce is the other.
Miami has the best tax situation both for the companies and the workers. Google, Apple, Facebook, and Twitter know that and have made Miami their home. Also, out of all the big cities in the States, Miami has the highest density of startups.
Seattle is a haven for startups as well as big brands. Venture capital funding helps businesses survive and grow and 1.9% of Seattle startups receive this funding. Not only that but some initiatives provide consulting to new businesses. Seattle ranks third, after San Francisco and Washington, for attracting and keeping tech talents.
Conclusion
According to the U.S. Small Business Administration, small businesses with less than 500 employees make 99.9% of all businesses in the States. Thus, every state should create a business environment that suits the entrepreneurs. The three categories that matter the most to prospective business owners, aside from the location, are also access to resources and business costs. These aspects continually stimulate business development and entrepreneurship across the States. Which area you'll choose to start a business depends on the industry and the aspects it favors.
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