We recently surveyed 3,000 executives to determine which cities they believe have hidden gems for launching startups. Here are the results:
Key findings and implications
whole:
- Regional Clusters: Many of these hidden gem cities are concentrated in areas known for their excellent educational institutions, low cost of living, and supportive local governments. The West Coast and Southwest are home to some of the best hidden gem cities for startups.
- Economic DiversityThese cities often have a diverse economic base supporting industries such as healthcare, technology, manufacturing and tourism.
- Quality of lifeAreas with a high quality of life, beautiful scenery and recreational opportunities tend to attract start-ups looking for a balanced lifestyle.
Factors influencing startup attraction:
- Community SupportSmaller cities often have tight-knit communities that provide strong local support for startups, creating a welcoming environment for new businesses.
- Cost reductionThe low cost of living and doing business in these hidden gem cities provides great financial relief for startups, allowing them to allocate more capital towards growth and innovation.
- Access to talentMany of these cities are home to universities and colleges, providing a continuous influx of young talent and research opportunities that can drive innovation and growth.
- Quality of lifeThe quality of life in these smaller cities – with less traffic, less pollution and more green space – can be a big draw for entrepreneurs looking for a balanced lifestyle.
- Diverse fieldsMore than just technology hubs, these cities offer opportunities in a variety of sectors, including healthcare, manufacturing, tourism and retail, providing entrepreneurs with diverse options.
- Strategic locationMany hidden gem cities are strategically located with access to major transportation routes, making logistics and distribution convenient.
- A supportive ecosystemLocal chambers of commerce, business incubators, and accelerators in these cities often provide critical resources, mentorship, and networking opportunities tailored to the needs of startups.
- Innovation HubCities such as Flagstaff, Arizona, and San Luis Obispo, California, are emerging as innovation hubs with strong support for sustainability and technological advancements.
- The charm of history and cultureCities like Scranton, Pennsylvania, and Charleston, South Carolina, offer rich historical and cultural environments that can inspire creativity, attract tourists, and add value to local businesses.
- Work-life balanceThese cities offer an abundance of recreational activities, beautiful scenery, and local events, allowing entrepreneurs to enjoy a better work-life balance.
- Government incentivesSome of these cities also offer government incentives such as tax breaks and subsidies to attract and support start-ups, making them more attractive destinations for entrepreneurs.
- Networking OpportunitiesSmaller cities often have vibrant local business networks and events that facilitate connections and collaboration between entrepreneurs and established companies.
- Technology InfrastructureCities such as Round Rock, Texas, and Akron, Ohio, are investing in their tech infrastructure, making them attractive locations for tech startups looking for strong digital support.
- Community-Driven GrowthMany hidden gem cities emphasize community-driven growth, where local businesses support each other and foster a supportive environment for startups.
