Sunday, April 28 marks the beginning of National Small Business Week, and the Sunshine State will have no shortage of businesses to support.
WalletHub has released a new report on the best big cities to start a business in 2024, with five Florida cities occupying the top 10 spots.
WalletHub analyst Cassandra Happe said, “Starting a business can be scary considering one in five startups don’t make it through the first year. That’s why cities that offer the following It is especially important to live in New businesses can grow if they have enough capital, workers, and customers to sustain themselves over the long term. ”
What is the best city to start a business?
To determine the best cities to launch a business, WalletHub compared 100 cities across three key aspects:
- business environment
- Access to resources
- expense
In this sample, we only consider cities that are appropriate in each case, excluding cities in surrounding metropolitan areas.
What is the best US city to start a business? Tip — Found in Florida
WalletHub’s research found Orlando to be the best big city to start a business, in part due to the fact that the number of small businesses is growing faster than most other cities.
“Orlando is also one of the top cities on the Kaufman Early Entrepreneur Index, which means not only is there a lot of startups in Orlando, but it also has a high survival rate for those startups.” WalletHub writes the expert. “One of the reasons startups are so prevalent and successful in Orlando is because the city has such a high number of investors per capita that new companies get the capital they need to survive and thrive. Because you can.”
Start a business in Orlando:
- First place – Increase in the number of small and medium-sized enterprises
- 42nd place – Labor costs
- 45th place – Cost of living
- The 20th – Average working hours per week (in hours)
- The 31st – Percentage of university graduate population
- 24th – Industry diversity
Orlando is known as a retirement haven, but with one of the highest growth rates in the working-age population in the country, companies have plenty of potential new employees.
What are the top 10 US cities to start a business?
Five Florida cities occupy the top 10 spots. Here are all the cities that make up the top list:
- orlando
- tampa
- charlotte, north carolina
- jacksonville
- miami
- atlanta, georgia
- Forth Worth, Texas
- Austin, Texas
- Durham, North Carolina
- St. Petersburg
WalletHub also took a deep dive into Tampa taking the title as the second best city for entrepreneurs. The company emphasized that the corporate tax rate is low, allowing companies to secure more profits. There are also more investors per capita, and the combination of lower taxes and higher capital gives companies more resources to weather the difficult early years.
“Tampa’s financial benefits are also evidenced by the fact that the city has a very high Entrepreneurial Activity Index, which indicates a large number of startups in the city and a high survival rate for those startups. ”
What are the advantages and disadvantages of starting a business in a big city?
WalletHub spoke to a variety of business owners and experts to gather advice and wisdom for potential entrepreneurs. They asked experts about the pros and cons of starting a business in a big city.
Miranda J. Welborn-Eleazar, assistant professor of management and entrepreneurship at the University of Iowa, says big cities offer valuable opportunities in terms of networking, co-working space, potential customers, co-founders and employees. He said he is providing it. However, there are drawbacks as well.
“…it comes with greater costs and competition. If you can’t afford the basic necessities of a new business, such as employees and real estate, it can be difficult to get up and running,” Welborn Eleazar said. said. “Also, it can be difficult to stand out when many competitors offer similar products or services.”
Felipe G. Massa, an associate professor at the University of Vermont, said that while large cities are hubs of human and financial capital, smaller cities are often more supportive of the efforts of their own entrepreneurs. .
“You’re more likely to have support from a mentor, you’re more likely to have clients who genuinely care about your success, and you’re more likely to have easier access to government and university support.”
Want to start a business? WalletHub asks experts for tips for aspiring entrepreneurs
In addition to general knowledge about starting a business in a big city, WalletHub’s panel of experts also shared tips for future entrepreneurs.
“Start small and be realistic,” advised Christopher E. Stevens, associate professor of entrepreneurship at Gonzaga University.
“Establishing an early-stage venture is a risky proposition, especially if you approach it with realistic goals, a network of support and advice in place, and if you align your goals around what is realistic and manageable. It makes a difference where it matters most. Like most small businesses founded in the United States, most of the resources will come from personal savings and credit,” Stevens said.
Dr. Brianna Stennard, associate professor of management and entrepreneurship at Mercer University, recommends starting your business in the leanest way possible. She added that starting lean allows you to develop your customer base and gather feedback on your prices and products/services while saving money for potential business.
“You will be proving your model before spending money on physical space. This will allow you to save enough capital from your lean business to fund business growth/expansion.” ” said Stennard.
