There’s that old saying that it’s all about location, location, location. In reality, establishing a successful small business is not solely about where you break ground on your entrepreneurial dream, but location is an important detail to consider.
Not only do you want to find a city that is a good fit for your family, but your business as well. Trying to incorporate a business in a place that is either oversaturated or a wasteland for your specific industry can make it impossible for your idea to take root.
Check out these three U.S. cities that are distinguished for their hospitality towards start-up small businesses.
3. Silicone Valley, CA
Most of California is a veritable hazard zone for potential small businesses. The U.S. recession had a significant impact on the Golden Coast, and business owners have felt the brunt of the troubled economy with high income tax rates and strict regulation.
However, Silicone Valley is the exception in this financially down state – at least for certain industries. Software, biotech, and IT consulting are thriving in Silicone Valley, partly because of the proximity of a research university and engineering school, which give companies the latest technologies and best recruits in the industry.
If you have any doubts about the economy in Silicone Valley, consider this: the area reaped in an estimated $2.6 billion in 2012’s third quarter alone.
2. Raleigh, NC
A small city with less than 500,000 residents, Raleigh should not be underestimated. Forbes ranked the capital of North Carolina as the top city for businesses and careers. Not to mention Raleigh currently has the fastest growing job market in the U.S., and is America’s fastest growing city according to U.S. Census Bureau.
Raleigh’s smaller size, and the fact that is has been relatively unheard of as a business giant until recently, means that the costs of starting and maintaining a small business there are much lower than in larger cities like New York or L.A.
1. Austin, TX
Texas, in general, came out of the Great Recession fairly unscathed. Cities like Houston, San Antonio, and Dallas all have vibrant economies, but it is the capital city of Austin that holds the most promise for small businesses.
Austin has an average of 23 businesses per 1,000 residents, and has seen a private sector job growth of almost 5% every year. The city also has a major hip, art-focused, and recreationally active culture, which many companies are capitalizing on and making big profits.
Some runner-up cities for small business friendliness include: Madison, WI; Nashville, TN; Boulder, CO; Salt Lake City, UT; and Seattle, WA. And while we’re on the subject, a few of the worst cities to start a business in, according to BizJournals, are Sacramento, Miami, Pittsburgh, Los Angeles, New Orleans, and Wichita.
Location, location, location – that’s not what it’s all about, but it does play a pretty big role. Fortunately, the economy is looking up, and there are plenty of great options to choose from.
