While a well-developed new business can survive in challenging circumstances, certain U.S cities provide the most fertile soil to bring your business from a seedling to a thriving operation. But what makes these locations the best? Various factors create the ideal circumstances for a new business venture – less competition and a lower cost of living. Nerdwallet researchers also considered unemployment rates, income levels, and population density to determine where you’d have the best chance to start a business and succeed in the long term. Just as a web-hosting directory allows you to compare virtual domains for your company page, this Nerdwallet study lets you compare the best physical locations for your business.
1. Boulder, Colorado
Everyone’s favorite ski town, Boulder, ranks number one on the list of best places to start a business. With a population of 301,072, Boulder showed a high number of companies per 100 people: 14.1. While it may seem counter-intuitive, having other firms nearby is a strength. Most businesses surrounding you will not be competitors, and it offers the perfect opportunity for foot traffic and drive-by exposure. Boulder hosts an intense technology scene and is home to several coworking spaces, incubators, and networking events.
2. Wilmington, North Carolina
A seemingly random choice for the second best place to start a business, Wilmington is close to the beach and growing as a tourist attraction. Downtown Wilmington hosts the highest number of companies per 100 people: 15, making it an especially bustling spot for business owners to set up shop.
3. Greater Bridgeport, Connecticut
The most noticeable scene in Bridgeport is its active art scene. Bridgeport also ranks the highest annual median income of all cities on the list at $63,369 and has a highly educated population. Family-owned businesses like Amodex have garnered significant financial success in this city of opportunity.
4. Evansville, Indiana-Kentucky
Evansville is a lesser-known city on the list but features several active cultural districts. The Growth Alliance for Greater Evansville also offers special assistance to new entrepreneurs, like help to select a location, tax phase-in assistance, and programs to assist you in expanding your business.
5. Greater Portland, Maine
Often mistaken for the hipster mecca of Portland, Oregon, Portland, Maine, is the safer place to start a business in the U.S. This city hosts a unique foodie culture with countless culinary businesses already thriving. Thanks to the Portland Regional Chamber of Commerce, there are opportunities for meeting places, health insurance, and even cell phone plans. For bootstrappers, Maine is also one of the cheapest states for car insurance, with a premium of $539 less than the U.S. annual average.
6. Cedar Rapids, Iowa
Cedar Rapids is a top city worldwide for corn and grain processing and is home to cultural centers like Orchestra Iowa and the Paramount Theatre. While it may not be known for attracting entrepreneurs, it does have a pleasantly lower cost of living. Furthermore, its unemployment rate is the lowest at just 3.8%.
7. Greater Beaumont, Texas
You may not know anything about Greater Beaumont, but its cost of living is something to pay attention to. Greater Beaumont’s average household spent just $8,316 per year on housing costs, lower than any other city on the list. The town is also home to a delightful Cajun culture and a view of the Gulf of Mexico.
8. Green Bay, Wisconsin
We know Green Bay for its passionate football fans, but there’s way more to the city than this. Along with museums, restaurants, and shops, Green Bay also features the CityDeck, a boardwalk along the Fox River. The Greater Green Bay Chamber offers hefty microloans to new business owners.
This isn’t to say that you’d fail to start a business in a city that is not on this list. However, if you live in or near one of these cities and are thinking about trying your hand as an entrepreneur, this report gives you the official “OK.” The report shows that the Midwest seems to be the ticket, offering more specific circumstances than most coastal cities.
