Since the beginning of US history, entrepreneurs have created commercial and community success through new industries, expanded accommodations and overall better living conditions; and not much has changed in the present day. Despite having a dense business population, the nation and our economy thrives on creating success from the ground up under the mentality – hard work really does pay off.
But now in the 20th century it is certainly not only up to the entrepreneurial community to create the next big commercial success, but also in the selected location’s ability to provide and nurture better business opportunity.
The data available to us from FitSmallBusiness’ – an online resource for small businesses – latest study on the best locations for entrepreneurs; supports this.
Highlighting how particular areas can fast-track entrepreneurial success with businesses built off opportunities rather than necessity; FitSmallBusiness takes a look into the nation’s top 40 metropolitan areas to compare against the desirability each presents to entrepreneurs.
When understanding a location’s influence on new business success, here’s the top categories FitSmallBusiness focused on:
- Startup Density
- Rate of New Entrepreneurs
- Opportunity Share of New Entrepreneurs
- Venture Capital Investment in the City
- Tax Friendliness to Small Businesses
- Business as the Primary Source of Income for Local Entrepreneurs
- Infrastructure and Pollution
- Annual Payroll
- Number of Firms with Paid Employees
- Number of of Nonemployer Firms
What this checklist represents is the impact not only the business community has on an area, but also the capital investment, state regulations and sustainable infrastructure it has that will dictate what opportunities are available to entrepreneurs and business savvy individuals alike.
So where are entrepreneurs headed for their next big project or startup? Without surprise to the Texas community – who felt the economic spurt of 2017; three of our largest metros made it into the list’s top 10.
Coming in at number four, the Dallas-Fort Worth area and its investable marketplace that has seen a spike in rapid business expansion and relocation to the community.
Just behind is Houston in the number five position and finally Austin sliding in at number nine.
The specific advantages of these three Texas cities centers around their affordability, expansive commercial space, and state funded investments in the commercial and community development of the area, that undoubtedly surpasses most in the nation.
Dallas was even regarded as the most tax friendly city across all in the ranking, with a surprising 85.18% in opportunity share for new entrepreneurs. This means that around 85 out of 100 new businesses were driven by opportunity rather than by necessity.
Houston falls second to Dallas in tax friendliness but brings with it an annual payroll of $147.8 billion, putting it in seventh in the category.
Finally the long-time startup hub of Austin – who was recently just recognized as being a leading location in the new tech industry by Trulia- ranks third in the rate of new entrepreneurs with the city’s startup density coming in fourth. Additionally just as stats for Dallas reported, 85 out of 100 entrepreneurs in the city were driven by opportunity as opposed to necessity.
The state of Texas also takes its place as having the most areas in mentioned on the list’s top 10; dubbing it the most desirable state nationwide for entrepreneurs.
The full list of top 10 also included:
- New York City
- Los Angeles
- Dallas-Fort Worth
- San Francisco
With these specific points and others recently reported on highlighting a present day spike in economic growth for the state, this is not a new trend. Entrepreneurs have increasingly flocked to Texas in recent years to seek out business opportunities and will continue to. And when it comes to the city of Dallas specifically, it continues to create a permanent position for itself as a leading location to invest in for generations to come.