For many Americans, starting a new business is one of the most significant achievements of their lives. Years of planning, research, and hard work often go into creating a brand new company. But even the most prepared and passionate entrepreneur is not fully insulated from outside forces – like municipal laws, the presence of a qualified workforce, and the quality of the local economy.
When it comes to the best cities for starting a new business, some locations have a clear lead on others. WalletHub, a personal finance website, released its analysis of the country’s best and worst destinations for aspiring small business owners. The rankings prioritized several factors – including start ups per capita, five-year business survival rate, and the average growth of business revenues.
“Starting a business can be very scary, considering one in every five startups doesn’t make it past the first year,” said Wallethub analyst Cassandra Happe, in a statement. “That’s why it’s especially important to live in a city that provides an environment where new businesses can thrive, with enough capital, workers and customers to keep it going long-term.”
Wallethub’s analysis compared 100 American cities and their performance across three dimensions: business environment, access to resources, and business cost. The scores in each dimension were based on 19 metrics, which were used to develop a weighted average. Data for the study was pulled from several sources, including the U.S. Census Bureau, the Bureau of Labor Statistics, and the Council for Community and Economic Research.
Continue reading to see which American cities were ranked as the best locations to start a new company.
