Best Cities to Start a Business in the USA
The United States boasts a diverse array of cities, each offering unique advantages for entrepreneurs. The country has a very dynamic business scene and ranks 6th among all OECD high-income countries for ease of doing business.
The United States is also the world’s biggest economy, with more than 33 million businesses, which confirms its standing as one of the most favorable environments for starting a business.
In addition to a vast consumer market, high rates of pay, abundant resources, and a culture that encourages innovation and entrepreneurship, the nation offers numerous opportunities for new ventures. However, choosing the right city to launch a new business is crucial to leveraging these benefits effectively.
This article explores the top 10 cities to start a business in the USA, highlighting what makes each location exceptional for entrepreneurs.
Contents
Top Cities in the USA to Start a Business
Austin, Texas
Austin is now a renowned business location, especially for its vibrant tech scene, often dubbed Silicon Hills, ranking first in the Tech Town index for 2 years in a row and having important strengths in employment specialization, business growth rates, and employee engagement. The city doesn’t only welcome new tech ventures being established – important companies have relocated and expanded their operations here, like Facebook, Google, and Oracle.
The city attracts startups and established companies alike with its business-friendly environment, low tax burden, minimal federal oversight, and a strong talent pool from the University of Texas, an Ivy League institution. As a result, Austin also ranks high on the list of most affordable cities for startups.
Industries with remarkable growth in Austin include healthcare, biotech, media, and creative.
Miami, Florida
Miami’s strategic location as a gateway to Latin America, coupled with its diverse population, high scores in net business openings, and low unemployment make it a hotspot for new business ventures. The city has been gaining positions as a top location for entrepreneurs since 2017, and is increasingly on the radar for investors and venture capital firms. Overall, Miami has the 12th best startup scene in the US and the 30th worldwide.
Key industries in Miami include international trade and logistics, tourism, healthcare, banking, creative design, and technology.
Dallas, Texas
The Dallas metro area has been listed as the 8th out of 100 best cities to start a small business. Dallas has a reputation for being a headquarter city, especially for firms in technology, finance, aviation, and energy. The city’s central location in the country provides significant logistical advantages, and its business-friendly environment attracts many entrepreneurs.
For startups, there are quality accelerator and incubator programs, some of which rank among the best in the nation. Recently, Dallas was named the 3rd fastest growing startup city.
Industry strengths in Dallas include IT, finance, manufacturing, real estate, and professional services.
Phoenix, Arizona
The city’s favorable business climate, quality of the local talent pool, modern infrastructure, and streamlined regulatory environment attract many entrepreneurs.
Phoenix ranks 7th in the list of best places in the United States for startup activity. In addition to the above, other attractive factors include affordable labor costs, about 18% below the national average, and state-wide incentives like tax credits and reimbursement grants.
Key growth-driving industries in Phoenix include education, healthcare, tourism, bioscience, and financial services, in addition to a manufacturing base expected to grow by more than 14% by 2030.
Raleigh, North Carolina
Raleigh, part of the Research Triangle, is known for its high concentration of research institutions and tech companies. There are approximately 375 businesses at this location alone, offering a concentration of expertise that will be very valuable to anyone considering opening a business in the city.
Raleigh has received high scores in different awards, including high ranks in the best city for tech workers, best for women in business success, most educated cities, and America’s biggest boomtowns. The city is also home to more than 600 startups, which benefit from an extensive provision of coworking hubs and incubator spaces to suit most any new business structure.
Tampa, Florida
Another Florida city makes it to this list, in this case Tampa, standing out for its ongoing supply of quality talent, central location, and favorable tax environment.
Due to these advantages, Tampa has emerged as a vibrant hub for startups, particularly in the tech sector. The city offers a strong support network for startups, including incubators and accelerators, which positioned Tampa as the number 1 emerging tech city in the US in 2021. In addition, the city boasts a beautiful coastal setting, and has a low cost of living coupled with a high quality of life, which adds to its appeal.
Atlanta, Georgia
An analysis of the 50 biggest U.S. cities along dimensions like job growth, number of business applications, and venture capital investment had Atlanta ranking first for two consecutive years. With the state’s business-friendly legal structure and the ease of setting up a business bank account, among other draws, the volume of new business applications in Atlanta was almost twice as high as in other major cities, and year-on-year job growth rates reached 47%.
Adding to that are low startup costs for new business ventures and the city’s unique combination of strengths, like robust transportation infrastructure and reasonable office costs combined with relatively low sales tax rates, to encourage consumer spending, which make it a strategic location for businesses.
Atlanta is home to more than 1,000 startups in software and data, FinTech, and IoT, and offers a diverse economy with established strengths in logistics, media, creative, and advanced manufacturing.
Houston, Texas
Houston has been named the 3rd most business friendly metro area in the United States. The city’s economy is highly diversified, encompassing industries like aerospace, healthcare, and manufacturing.
In addition, Houston offers a pro-business environment with no state income tax, making it attractive for entrepreneurs. The city’s extensive transportation network, including one of the largest ports in the country, enhances its logistical advantages for both large multinationals and small business enterprises.
For startups looking for the ideal place to enact their business plan, Houston is also a great option, as the city is among the 50 best locations for startup ventures in the nation.
Nashville, Tennessee
Nashville gets a high score in the 2024 annual metro ranking report, which examined North American cities in terms of how suitable they are for business relocation and expansion. The report highlighted Nashville’s business climate and the strengths of its tech talent pool, in addition to having the conditions as a top corporate headquarters location, with large companies like Dollar General, Bridgestone, and Amazon already present in the city.
Other reports rate Nashville highly for its business environment, access to resources, and overall business costs.
More than 40,000 businesses and 300+ startups are registered in the city, and enjoy a supportive environment and facilities for early-stage companies, such as the Nashville Entrepreneur Center, LaunchTN, and StartupNash.
Conclusion
Along with the foundations like picking a business name, identifying your potential customers, and determining your operation’s legal requirements dictated by the individual state government, choosing the right city to start a new business is also a critical decision.
The cities listed above each offer unique advantages, from strong local economies and supportive small business and startup ecosystems to high quality of life and ready access to skilled labor. By considering the location-specific factors we’ve covered in this article, entrepreneurs can find the ideal location to launch and grow their new venture in the United States.
Further Insights
Curious about the other factors that would make the above U.S. cities a good new home for your current business or new venture? Or are you interested in learning about general developments in American businesses and the workspaces they inhabit? For more of our recent stories covering these and more topics, check out the links below.
New York Central Business District
United States Commercial Property Prices Per Square Foot in 2024
Top Ten Largest CBDs in the USA
The Cost of Renting Office Space in Boston
Analyzing the Cost of Office Space in Washington DC
Commercial Real Estate Depreciation – How Does It Work?
NYC Office Space Rental: A Cost Analysis
Cost of Office Space in San Francisco vs LA Office Rental Prices
Mixed-Use Commercial Property: What You Need to Know
8 Benefits of In-Person Meetings: Meeting in Person vs Online
