For most people, living the American dream means having their own business. Which is a good thing because there are many opportunities to running one’s company than working on a 9-to-5 job. However, making that dream a reality can be a bit challenging, depending on which area you’re in.
Yes, location, location, location. Starting your own business may have ups and downs. But making it grow big and achieving that American dream can be easier to achieve if you live in any of these places.
So what are the best places to start a business? According to the financial website WalletHub, these are the top 10 best cities that beat out the New York and California metro areas.
1. Oklahoma City, Oklahoma
2. Austin, Texas
3. Sioux Falls, South Dakota
4. Missoula, Montana
5. Durham, North Carolina
6. Bismarck, North Dakota
7. Cheyenne, Wyoming
8. Billings, Montana
9. Charlotte, North Carolina
10. Raleigh, North Carolina
For this research, WalletHub looked into over 180 cities, including 150 of the most densely populated metropolitan areas in the U.S. To determine viability for starting a business, the financial website evaluated each potential location based on these three criteria, among others:
Business landscape; i.e., whether or not the area offers a conducive environment for running a business;
Business costs; i.e., will it be expensive to run a business in the place, taking into consideration the employees’ wage rates, cost of living, overhead expenses, etc.; and
Access to resources; i.e., availability of the products, services, or support needed to run the business.
Other factors taken into account include the average rates in terms of work week, revenue growth probability, office space affordability, five-year business survivability, and corporate taxes.
If you want to start your business, according to WalletHub, budding entrepreneurs might want to move to Oklahoma City, Oklahoma. The city scored high in all three mentioned categories, particularly in business landscape where it ranked eighth place.
It seems elite coastal cities are not highly preferred when it comes to starting a business. Like Oklahoma City, fly over states are the in thing right now. In second place is Austin, Texas. Many experts call it the rockstar when it comes to small business cities.
But how did Austin, Texas, climb to the top? Who would have thought a thriving business landscape lies in cowboy country? The reason may be surprisingly simple to many.
Austin has a supportive community where people connect and help each other create something bigger. Business owners help fellow entrepreneurs, whether it’s participating in events or sharing industry learnings. They do these even if there’s no benefit for themselves.
Other Cities Viable for Starting a Business
WalletHub also revealed other metro areas conducive for starting a business. For the cheapest office space rental rates, check out Lewiston, Maine. On the other hand, the cities with the most expensive office spaces are the following: Washington, D.C., New York City, and San Francisco.
Irvine, California, is the U.S. city with the most educated population while the least is San Bernardino, California. The longest average work week is in Anchorage, Alaska, while Burlington, Vermont, has the shortest. Detroit, Michigan, ranks as the highest in human capital availability; Orlando, Florida, has the lowest.