Location is vital to the success of your small business. All over the country, cities experience major challenges ranging from population growth to economic stagnation. Nonetheless, some areas are deemed to be hot spots for entrepreneurs who want to start a business.
Any business owner would want a business location where an educated workforce is abundant, the cost of living is low, and the business tax is at the minimum. Thus, check out these top 10 major cities in the U.S. to start your small business this 2021.
Best Cities to Start Your Business in 2021
#10 San Francisco
If you plan to start a small business in the tech industry, San Francisco might be the best place for you. The city boasts over 94,000 people employed in tech. Although the cost of living is high, you can always get real estate tips for buyers in the area to land the least expensive but best housing.
Ever since 2010, Seattle has been hailed as one of the fastest-growing cities in the country. Despite being 24 percent more expensive than an average U.S. city, the area still is a hotbed for various startup businesses, ranging from food and gaming to healthcare services.
The young and vibrant community of this city is a home for tech industries like Amazon and Microsoft. This is also the place where interesting shops, bars, coffeehouses, and restaurants are found.
#8 Salt Lake
Hailed as a business-friendly city with a tax rate of only 5 percent, both individual and corporation, Salt Lake City is another tech hub with plenty of angel investors. The area has a low unemployment rate of 3.7 percent and is home to one of the leading educational institutions in biomedical and chemical research.
With the cost of living lower than the national average and being home to many Fortune 500 companies, Atlanta is another best city to start a small business. The region boasts a well-educated workforce, a high weekly wage than the national average, and a community supportive of start-ups.
Over 5.3 million people live in the metro Atlanta region, and there are thousands of businesses, competitive educational institutions, and a world-class airport near the area. Apart from that, the flourishing art scene and many locally-owned shops make it attractive to young families.
#6 El Paso
Located at the farthest west of Texas, El Paso is the biggest binational metropolitan area in the country. Despite not being popular for its educated workforce, El Paso’s taxes, labor, energy, and office rents are below the national average, making it one of the most affordable cities to live in.
Even though the region does not boast of a highly educated workforce, the presence of the University of Texas provides a regular supply of prospective employees for the tech industry. Being near Mexico, knowing how to speak Spanish is a great asset for a local entrepreneur.
Being one of the Research Triangle Region, Raleigh is another attractive city to open up a business. It has around 12 universities and colleges, offering a consistent supply of an educated workforce. Furthermore, unlike other tech and research hub cities, Raleigh’s cost of living is slightly lower than the national average.
#4 Colorado Springs
Consistently hailed as one of the most livable cities in the country, Colorado Springs reflects a healthy pro-business environment. The unemployment rate of the city is only 4 percent as compared to the 4.7 national average. Moreover, the city is only an hour’s drive to the Denver metro market.
The corporate income tax of a flat rate of 4.63 percent makes it enticing for small businesses to open up in this region. In fact, Colorado Springs City belongs to the recognized entrepreneurial zone of the state of Colorado.
Why is Houston an ideal city to start a business? It is affordable. Unlike other cities across the country that have experienced a housing bubble, the average home price is only $190,000, well below the national average. The same thing goes with the cost of living. Also, the city is home to 25 of the Fortune 500 companies.
Known for its snowboarding and skiing venues, Denver has an expanding local economy. Ever since the residents legalized recreational marijuana in 2012, many people, especially millennials, have moved into the city. With a well-educated workforce, Denver has an unemployment rate of only 3.1 percent.
Apart from tourism, Orlando attracts several industries, including technology, aviation, aerospace, manufacturing, and military defense. It is also one of the fastest-growing cities in the country, with around 1,000 people moving every week.
Have you decided on what city to start up your small business?