Americans are born with an entrepreneurial streak. It’s in our DNA. From the Gold Rush to the Industrial Revolution to the Internet Age, intense periods of innovation have molded our economy and sparked important societal advancements. That said, recent years have been some of the toughest ever for business owners in the U.S. due to the COVID-19 pandemic, the Great Resignation and high inflation.
In order to help aspiring entrepreneurs — from restaurant owners to high-tech movers and shakers — maximize their chances for long-term prosperity, WalletHub compared the relative startup opportunities that exist in 100 U.S. cities. We did so using 19 key metrics, ranging from the five-year business-survival rate to labor costs to office-space affordability.
For a breakdown of smaller markets, check out WalletHub’s Best Small Cities to Start a Business ranking.
Cassandra Happe, WalletHub Analyst
Main Findings
Best Places to Start a Business
Overall Rank | City | Total Score | Business Environment Rank | Access to Resources Rank | Business Costs Rank |
---|---|---|---|---|---|
1 | Orlando, FL | 68.22 | 1 | 13 | 29 |
2 | Tampa, FL | 62.73 | 4 | 39 | 26 |
3 | Charlotte, NC | 62.07 | 11 | 20 | 30 |
4 | Jacksonville, FL | 62.00 | 5 | 68 | 13 |
5 | Miami, FL | 61.92 | 2 | 52 | 55 |
6 | Atlanta, GA | 60.09 | 10 | 35 | 36 |
7 | Fort Worth, TX | 59.50 | 8 | 18 | 66 |
8 | Austin, TX | 59.37 | 3 | 17 | 81 |
9 | Durham, NC | 59.29 | 42 | 3 | 21 |
10 | St. Petersburg, FL | 58.04 | 7 | 93 | 19 |
11 | Raleigh, NC | 58.00 | 40 | 7 | 32 |
12 | Arlington, TX | 56.86 | 12 | 47 | 65 |
13 | Colorado Springs, CO | 56.65 | 26 | 71 | 17 |
14 | Dallas, TX | 56.41 | 13 | 46 | 67 |
15 | Winston-Salem, NC | 56.22 | 50 | 62 | 2 |
16 | Lubbock, TX | 56.17 | 51 | 4 | 50 |
17 | Hialeah, FL | 55.97 | 6 | 100 | 28 |
18 | Boise, ID | 55.91 | 14 | 80 | 45 |
19 | Reno, NV | 55.27 | 45 | 12 | 48 |
20 | Aurora, CO | 55.24 | 19 | 83 | 27 |
21 | Denver, CO | 55.14 | 28 | 32 | 56 |
22 | Scottsdale, AZ | 55.08 | 9 | 64 | 77 |
23 | Irving, TX | 55.04 | 17 | 24 | 75 |
24 | San Bernardino, CA | 54.89 | 20 | 65 | 58 |
25 | Oklahoma City, OK | 54.59 | 55 | 37 | 5 |
26 | Tulsa, OK | 54.28 | 63 | 50 | 1 |
27 | Phoenix, AZ | 54.04 | 21 | 75 | 46 |
28 | Chandler, AZ | 53.77 | 16 | 78 | 69 |
29 | Gilbert, AZ | 53.55 | 15 | 72 | 76 |
30 | Nashville, TN | 53.26 | 22 | 42 | 70 |
31 | Laredo, TX | 52.93 | 60 | 10 | 49 |
32 | Stockton, CA | 52.71 | 46 | 16 | 68 |
33 | North Las Vegas, NV | 52.67 | 30 | 82 | 39 |
34 | Indianapolis, IN | 52.66 | 53 | 66 | 10 |
35 | Mesa, AZ | 52.32 | 25 | 92 | 40 |
36 | Glendale, AZ | 51.33 | 24 | 99 | 37 |
37 | Madison, WI | 51.19 | 81 | 2 | 53 |
38 | Houston, TX | 50.94 | 36 | 74 | 59 |
39 | Henderson, NV | 50.88 | 33 | 85 | 52 |
40 | Riverside, CA | 50.84 | 29 | 43 | 80 |
41 | Fresno, CA | 50.68 | 52 | 31 | 62 |
42 | Louisville, KY | 50.36 | 77 | 19 | 16 |
43 | Garland, TX | 50.34 | 23 | 87 | 71 |
44 | Columbus, OH | 50.25 | 66 | 30 | 41 |
45 | Fort Wayne, IN | 50.15 | 74 | 63 | 6 |
46 | Kansas City, MO | 50.10 | 73 | 49 | 9 |
47 | Irvine, CA | 50.04 | 35 | 1 | 97 |
48 | Plano, TX | 50.00 | 18 | 48 | 89 |
49 | Tucson, AZ | 49.88 | 70 | 38 | 22 |
50 | Greensboro, NC | 49.82 | 83 | 54 | 3 |
51 | Las Vegas, NV | 49.70 | 43 | 91 | 34 |
52 | Omaha, NE | 49.64 | 67 | 28 | 38 |
53 | El Paso, TX | 49.37 | 56 | 86 | 42 |
54 | Chicago, IL | 49.23 | 57 | 14 | 78 |
55 | Sacramento, CA | 49.17 | 38 | 56 | 79 |
56 | San Antonio, TX | 48.94 | 49 | 76 | 60 |
57 | Lincoln, NE | 48.70 | 90 | 9 | 33 |
58 | Seattle, WA | 48.65 | 32 | 8 | 96 |
59 | Wichita, KS | 48.40 | 91 | 23 | 11 |
60 | Birmingham, AL | 48.38 | 79 | 69 | 7 |
61 | Long Beach, CA | 48.23 | 39 | 27 | 86 |
62 | Baton Rouge, LA | 48.09 | 85 | 25 | 25 |
63 | Norfolk, VA | 48.00 | 64 | 90 | 20 |
64 | Los Angeles, CA | 47.87 | 34 | 29 | 90 |
65 | Virginia Beach, VA | 47.76 | 65 | 73 | 44 |
66 | New Orleans, LA | 47.45 | 71 | 45 | 43 |
67 | Bakersfield, CA | 47.24 | 59 | 59 | 74 |
68 | Boston, MA | 47.20 | 69 | 6 | 83 |
69 | Minneapolis, MN | 46.28 | 78 | 21 | 64 |
70 | San Diego, CA | 46.17 | 37 | 34 | 92 |
71 | Chesapeake, VA | 46.13 | 54 | 96 | 51 |
72 | Albuquerque, NM | 45.87 | 72 | 95 | 12 |
73 | Milwaukee, WI | 45.66 | 89 | 58 | 24 |
74 | Memphis, TN | 45.47 | 75 | 79 | 35 |
75 | St. Paul, MN | 45.40 | 76 | 55 | 57 |
76 | Santa Ana, CA | 45.10 | 31 | 94 | 85 |
77 | Detroit, MI | 45.08 | 88 | 88 | 8 |
78 | San Francisco, CA | 44.98 | 27 | 11 | 100 |
79 | Portland, OR | 44.79 | 61 | 40 | 84 |
80 | Cincinnati, OH | 44.48 | 92 | 53 | 31 |
81 | Honolulu, HI | 44.27 | 93 | 5 | 72 |
82 | Philadelphia, PA | 44.16 | 80 | 61 | 63 |
83 | Buffalo, NY | 44.04 | 98 | 60 | 15 |
84 | Anchorage, AK | 44.02 | 41 | 97 | 82 |
85 | Oakland, CA | 43.84 | 47 | 33 | 95 |
86 | Newark, NJ | 43.81 | 86 | 22 | 73 |
87 | Lexington-Fayette, KY | 43.67 | 94 | 36 | 23 |
88 | Toledo, OH | 43.56 | 96 | 70 | 14 |
89 | Anaheim, CA | 42.94 | 48 | 81 | 87 |
90 | Chula Vista, CA | 42.74 | 44 | 77 | 91 |
91 | Jersey City, NJ | 42.01 | 68 | 15 | 93 |
92 | Baltimore, MD | 41.96 | 87 | 89 | 47 |
93 | Cleveland, OH | 41.43 | 97 | 84 | 18 |
94 | Corpus Christi, TX | 41.06 | 82 | 98 | 54 |
95 | St. Louis, MO | 40.89 | 100 | 67 | 4 |
96 | New York, NY | 40.32 | 84 | 26 | 88 |
97 | Pittsburgh, PA | 40.09 | 99 | 57 | 61 |
98 | San Jose, CA | 38.01 | 58 | 51 | 98 |
99 | Fremont, CA | 37.00 | 62 | 41 | 99 |
100 | Washington, DC | 33.63 | 95 | 44 | 94 |
Note: With the exception of “Total Score,” the columns in the table above depict the relative rank of each city, and a rank of 1 represents the best conditions for each category.
- Highest
- T-1. Boise, ID
- T-1. Austin, TX
- T-1. Orlando, FL
- T-4. Las Vegas, NV
- T-4. Henderson, NV
- Lowest
- 96. Buffalo, NY
- 97. Pittsburgh, PA
- 98. Toledo, OH
- 99. Cleveland, OH
- 100. St. Louis, MO
- Most
- T-1. Laredo, TX
- T-1. Lincoln, NE
- T-1. Madison, WI
- T-1. Lubbock, TX
- T-1. Chicago, IL
- Least
- T-84. Phoenix, AZ
- T-84. Mesa, AZ
- T-84. Chandler, AZ
- T-84. Glendale, AZ
- T-84. Scottsdale, AZ
- Lowest
- 1. Cleveland, OH
- 2. Detroit, MI
- 3. Birmingham, AL
- 4. Toledo, OH
- 5. Buffalo, NY
- Highest
- 96. Seattle, WA
- 97. Irvine, CA
- 98. San Jose, CA
- 99. San Francisco, CA
- 100. Fremont, CA
- Highest
- 1. Stockton, CA
- 2. North Las Vegas, NV
- 3. Detroit, MI
- 4. New York, NY
- 5. Fresno, CA
- Lowest
- 96. Birmingham, AL
- 97. Cincinnati, OH
- 98. Orlando, FL
- 99. Pittsburgh, PA
- 100. St. Louis, MO
- Longest
- 1. Scottsdale, AZ
- 2. Dallas, TX
- 3. Washington, DC
- T-4. Anchorage, AK
- T-4. Norfolk, VA
- Shortest
- 96. San Bernardino, CA
- 97. Tucson, AZ
- 98. Newark, NJ
- 99. Madison, WI
- 100. Buffalo, NY
- Cheapest
- 1. Toledo, OH
- 2. Colorado Springs, CO
- 3. Wichita, KS
- 4. Fort Wayne, IN
- 5. Stockton, CA
- Most Expensive
- 95. Oakland, CA
- 96. Jersey City, NJ
- T-97. Washington, DC
- T-97. New York, NY
- T-97. San Francisco, CA
- Most
- 1. Irvine, CA
- 2. Seattle, WA
- 3. Washington, DC
- 4. Fremont, CA
- 5. Scottsdale, AZ
- Least
- 96. Santa Ana, CA
- 97. North Las Vegas, NV
- 98. Newark, NJ
- 99. Detroit, MI
- 100. San Bernardino, CA
In-Depth Look at the Best Large Cities to Start a Business
Orlando, FL
Orlando, FL, is the best large city to start a business in, due in part to the fact that the number of small businesses has grown faster than in most other cities. It’s also one of the top cities on the Kauffman Early-Stage Entrepreneurship Index, which means that in addition to Orlando having a lot of startups, those startups also have a high survival rate.
One of the reasons why startups are so prevalent and successful in Orlando is that the city has a very high number of investors per capita, so new businesses are able to get the funding that they need to survive and thrive.
Furthermore, although Orlando is known as a retirement haven, it has one of the highest growth rates for the working-age population, so businesses have plenty of potential new employees.
Tampa, FL
Tampa, FL, is the second-best large city for starting a small business, in part because it has a low corporate tax rate, allowing businesses to keep more of their revenue. It also has a high number of investors per capita, and the combination of low taxes and high capital gives businesses more resources to survive the difficult initial years.
The monetary benefits of Tampa are evident in the fact that the city scores very high on the Entrepreneurial Activity Index, which indicates that there is a large number of startups in the city and those startups have a high survival rate.
Charlotte, NC
Charlotte, NC, is the third-best large city to start a small business in, and it has some of the highest industry variety in the country, which means that it’s easy for a lot of different types of businesses to find a niche. In addition, the city has some of the lowest corporate taxes in the country, which can provide a boost to new businesses by allowing them to reinvest more of their capital.
Businesses that are currently in Charlotte are thriving, as the city has a very high growth rate in the number of small businesses. It also has some of the best employment growth in the country, which makes it more likely that new businesses will be able to find employees.
Ask the Experts
As current self-employment figures have shown, an increasing number of Americans aim to become their own boss. To assist them in that goal, WalletHub asked a panel of entrepreneurship experts to share their thoughts on the following key questions:
- What tips would you offer an aspiring entrepreneur?
- Which are some of the biggest mistakes entrepreneurs make?
- Besides technology, what other sector is ripe for disruption by entrepreneurs? What is the next big thing?
- What are the advantages and disadvantages of starting a business in a big city?
- What is the best source of funding for new companies?
- What is the most effective way state and local authorities can stimulate entrepreneurship and new business development?
Ask the Experts
Methodology
In order to determine the best cities for launching a business, WalletHub compared 100 cities, across three key dimensions: 1) Business Environment, 2) Access to Resources and 3) Business Costs. Our sample considers only the city proper in each case, excluding cities in the surrounding metro area.
We evaluated the three dimensions using 19 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for startups. Data for metrics marked with an asterisk (*) were available at only the state level.
We then determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
Business Environment – Total Points: 50
- Length of Average Work Week (in Hours): Full Weight (~6.25 Points)
- Average Growth in Number of Small Businesses: Full Weight (~6.25 Points)
- Startups per Capita: Full Weight (~6.25 Points)
- Average Growth of Business Revenues: Full Weight (~6.25 Points)
- Five-Year Business-Survival Rate*: Full Weight (~6.25 Points)
- Industry Variety: Full Weight (~6.25 Points)
- Entrepreneurship Index*: Full Weight (~6.25 Points)
- Job Growth (2022 vs. 2018): Full Weight (~6.25 Points)
Access to Resources – Total Points: 25
- Financing Accessibility: Full Weight (~3.57 Points)
Note: This metric was calculated as follows: Total Annual Value of Small-Business Loans / Total Number of Small Businesses. - Venture Investment (amount) per Capita: Full Weight (~3.57 Points)
- Prevalence of Investors: Full Weight (~3.57 Points)
- Human-Capital Availability: Full Weight (~3.57 Points)
Note: This metric was calculated as follows: Number of Job Openings per Number of Civilians in Labor Force minus Unemployment Rate. - Higher-Education Assets: Full Weight (~3.57 Points)
Note: This metric is based on WalletHub’s “2024 College & University Rankings” ranking of America’s top 857 universities. - Share of College-Educated Population: Full Weight (~3.57 Points)
Note: This metric measures the percentage of the population aged 25 and older holding at least a bachelor’s degree. - Working-Age Population Growth: Full Weight (~3.57 Points)
Note: “Working-Age Population” includes individuals aged 16 to 64.
Business Costs – Total Points: 25
- Office-Space Affordability: Full Weight (~5.00 Points)
Note: This metric measures the per-square-foot rental cost of commercial office space. - Labor Costs: Double Weight (~10.00 Points)
Note: This metric measures the median annual income. - Corporate Taxes*: Full Weight (~5.00 Points)
- Cost of Living: Full Weight (~5.00 Points)
Sources: Data used to create this ranking were collected as of April 2, 2024 from the U.S. Census Bureau, Bureau of Labor Statistics, Ewing Marion Kauffman Foundation, National Venture Capital Association, Yelp, Indeed.com, Tax Foundation, Council for Community and Economic Research, LoopNet, Federal Deposit Insurance Corporation and WalletHub research.
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