Explore the 10 Best Cities for Entrepreneurs to Establish and Grow Their Ventures

For aspirational entrepreneurs dreaming about launching their own ventures, one geographical area often leaps to mind. It’s that trendy west coast hotbed synonymous with the very essence of startups: Silicon Valley.

There was a time when the idea of launching a business—especially of the tech variety—in Silicon Valley held undeniable allure. However, in today’s reality, the exorbitantly high cost of living has elevated the area to an economic stratosphere where talent can hardly thrive unless it is propped up by a sizable six-figure income at the very least.

These untenable living conditions should not stifle the entrepreneurial zeal. Aligning with the spirit of National Entrepreneur Month, we chose to compile a list of cities which are not only thriving hubs for entrepreneurship but also offer an affordable lifestyle.

To do so, we delved into data from trusted sources such as the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and the U.S. Bureau of Economic Analysis. We then assessed the 100 most populous metropolitan areas against a set of key factors:

• Proportion of entrepreneurs.
• Percentage of female entrepreneurs.
• Income levels of self-employed individuals.
• Count of new small businesses established (referencing the most recent data available from 2014).
• Variation in the number of new small businesses between 2004 and 2014.
• Cost of living.
• Unemployment figures (using the latest data from September 2018).

Startup Havens: Unveiling the 10 Best Cities for Entrepreneurs to Thrive and Succeed

Perhaps you’re already residing in one of the cities that have qualified for our commendable list. If that’s the case, it may be the perfect opportunity to leap forward with that dream you’ve been harboring—say, of owning your very own bakery. If your current city hasn’t made the cut, don’t fret. Instead, keep these places in mind as potentially advantageous regions for relocation, should your entrepreneurial journey ever steer you in the direction of establishing a physical business base.

St. Louis, Missouri

Average Earnings: $56,905

Growth in New Small Businesses: 51%

Entrepreneurs’ Share: 2.9%

Unemployment Rate: 2.9%

Known for its vibrant blues music, tantalizing barbecue, and the iconic Gateway Arch, St. Louis has another claim to fame. It is a promising haven for fledgling businesses and budding entrepreneurs, boasting an impressive 51% growth in new small businesses over a decade.

Furthermore, St. Louis’s costs of living stand approximately 6% below the national average, making it an economically enticing choice. It also secured the second position on our list of the best cities for tech jobs that are both promising and affordable.

Colorado Springs, Colorado

Average Earnings: $67,804

Growth in New Small Businesses: 8.7%

Entrepreneurs’ Share: 4.3%

Unemployment Rate: 3.6%

While Denver often takes the spotlight, Colorado Springs—located an hour’s drive to the south—emerges as an attractive alternative for aspiring business owners. Its unemployment rate aligns with the national average. However, it truly shines with its high proportion of entrepreneurs and elevated earnings levels for self-employed individuals.

Small business owners and would-be entrepreneurs in Colorado Springs can take advantage of resources like the Colorado Springs Chamber and Economic Development Corporation. Plus, here’s a fun fact to fuel your ambition: some of the first GPS technology was developed right in Colorado Springs! That’s a remarkable legacy to live up to, but remember—no undue pressure.

Boise, Idaho

Average Earnings: $50,719

Growth in New Small Businesses: 11.8%

Entrepreneurs’ Share: 4.6%

Unemployment Rate: 2.1%

Idaho’s capital, Boise, makes our list with a robust 12% growth in new small businesses recorded between the years 2004 and 2014. Boise also shines with the lowest unemployment rate among all cities on our list, significantly undercutting the national average of 3.7%.

Valuable local resources for entrepreneurs are readily accessible. The U.S. Small Business Administration operates a district office in Boise, and the Idaho Small Business Development Center finds its home within Boise State University.

Sarasota, Florida

Average Earnings: $60,884

Growth in New Small Businesses: 9%

Entrepreneurs’ Share: 6.4%

Unemployment Rate: 2.8%

Have you ever entertained the idea of administering your own venture while enjoying the serenity that only the beach can offer in your leisure time? Your dream destination might just be Sarasota, Florida! This paradise secures a spot on our list, boasting a substantial growth of 9% in the formation of new small businesses within the span of a decade.

Sarasota County’s Office of Business and Economic Development provides comprehensive, systematic guidelines for embryonic business proprietors. Their remarkable support ranges from helping entrepreneurs establish their foothold, to assisting those aiming to relocate or expand their business territories. Here’s an indubitable insider tip from Alex Mahadevan, our highly competent data journalist who grew up in Sarasota: definitely explore The HuB, an innovative coworking space abundantly accommodating to those in the creative industry as well as fellow entrepreneurs. It indeed validates that Sarasota is an entrepreneurial haven worth your consideration.

Austin, Texas

Average Earnings: $62,511

Growth in New Small Businesses: 25.2%

Entrepreneurs’ Share: 3.7%

Unemployment Rate: 2.9%

Unfold the not-at-all-surprising presence of Austin on our refined list. Considered a top contender in the myriad “Must-live Cities,” the stunning capital of Texas consistently satisfies the criteria and exceeds expectations.

Renowned as one of the most rapidly growing cities across the United States, Austin is a magnet pulling ambitious young graduates within its vibrant folds. Between 2004 and 2014, this dynamic metropolis witnessed an impressive leap of 25% in the inauguration of small business enterprises. This marked increase defines Austin’s strong emphasis on entrepreneurship, innovation, and economic growth. Such magnitude of progress and opportunity undeniably cements Austin’s position on ‘The Ideal Cities to Dwell In’ list.

Lexington, Kentucky

Average Earnings: $76,113

Growth in New Small Businesses: 23.6%

Entrepreneurs’ Share: 3.7%

Unemployment Rate: 3.3%

Prize-winning thoroughbreds aren’t the only entities accumulating accolades in the captivating city of Lexington, Kentucky. This city strides into our list of coveted entrepreneurial havens, primarily due to its accelerated emergence of new businesses and the commendable average earnings by self-employed individuals – seizing the second position on our list.

Budding entrepreneurs scouting for key information and invaluable resources can knock on the doors of the Kentucky Small Business Development Center. Embarking on an entrepreneurial journey in Lexington may catapult you onto the pedestal of renowned magnates. Who’s to say? You could well be the future Colonel Sanders! Lexington’s fertile business environment promises an impressive array of opportunities, making it a top contender for ambitious entrepreneurs embarking upon their business ventures.

Miami, Florida

Average Earnings: $50,712

Growth in New Small Businesses: 12.4%

Entrepreneurs’ Share: 6.7%

Unemployment Rate: 3.2%

Two elements heat up the vibrant city of Miami: the tropical climate and a simmering entrepreneurship landscape. This thriving South Florida metropolis has witnessed a noteworthy ascent in the inception of small businesses, coupled with an impressive density of entrepreneurs. These statistics collectively secure Miami’s unsurpassed position for entrepreneurial demographics, earning it a spot of pride on our list.

Equating to the creative realm of Sarasota’s The HuB, CIC Miami is a co-working office space that encourages and incubates the entrepreneurial spirit. It is a resourceful platform worth investigating for comprehensive resources, boundless networking prospects, and cultivating synergy. Entrepreneurs scouting can find a place to proliferate their entrepreneurial dreams, amidst like-minded individuals and advantageous networking opportunities in the sizzling Miami cityscape.

Kansas City, Missouri

Average Earnings: $61,008

Growth in New Small Businesses: 19.8%

Entrepreneurs’ Share: 3.2%

Unemployment Rate: 2.8%

One might find it intriguing or even slightly perplexing that part of Kansas City is actually nestled in Missouri rather than Kansas. Put geographical semantics aside, and Kansas City forcefully claims its fitting place in our top 10 list. This commendation is largely attributed to its commendable near 20% surge in small businesses over a span of a decade and its admirable low unemployment ratio.

Kansas City holds a particular allure for entrepreneurs with a penchant for technology. The city has distinguished itself, claiming the coveted number one position amongst best affordable tech cities on our list. This speaks volumes about its pivotal role in the technology ecosystem, making Kansas City an even more appealing choice for tech-savvy entrepreneurs eyeing an affordable city pulsating with development and innovation.

Provo, Utah

Average Earnings: $60,390

Growth in New Small Businesses: 2.7%

Entrepreneurs’ Share: 4.7%

Unemployment Rate: 2.8%

One undeniable takeaway from this comprehensive perspective is that Utah should certainly not be overlooked. With an overall population slightly surmounting 3 million, the cities within the Beehive State recurrently feature on notable “best cities” compilations—including our own meticulously crafted lists.

Provo doesn’t merely earn its place as one of the premier cities fostering entrepreneurship; it also recorded a commendable 4% climb in income in 2017. This economic augmentation was predominantly driven by a thriving retail trade, further cementing Provo’s place as a favorable hub for entrepreneurial development. Intertwining these distinguishing aspects, it’s evident that Provo, and indeed Utah, present a flourishing environment for those willing to thread the entrepreneurial path.

Salt Lake City, Utah

Average Earnings: $78,169

Growth in New Small Businesses: 1.9%

Entrepreneurs’ Share: 4.1%

Unemployment Rate: 3%

Haven’t we already lauded Utah’s merits? Providing an impressive finale to our list of entrepreneurial cities is Salt Lake City. It boasts a 4.1% share of entrepreneurs in the remarkably populous metropolitan area and the highest average earnings for autonomous business individuals.

Salt Lake City is no stranger to accolades and consistently features in our various listings. Its appeal is bolstered by its solid 2.6% progression in hourly remuneration and an impressive 3.5% income growth. Framing an undisputed entrepreneurial haven, Salt Lake City clearly demonstrates a proactive commitment towards fostering entrepreneurial activity, making it a top choice for self-employed professionals eyeing a lucrative future.