Entrepreneurs all across the US are getting a much needed boost from the evolving marketplace that is helping attract more awareness to the businesses of the future who are operating in our backyards. With more conscious consumers and corporations leaning in on the businesses in their communities, the opportunity for entrepreneurs are gaining momentum – and so is investors’ interest to hit big through these small, mostly unknown operations.
In a time where the entrepreneurial path is a viable career choice and the available resources are there to back them up, we are seeing the marketplace being flooded with smaller organizations that offer innovative services and technologies that just might be the next Apple or Microsoft of our future.
And it is from the increasing number of today’s largest corporations that started from humble beginnings where this enticing opportunity for both entrepreneurs and investors stems. But not all locations measure up the same in offering the highest potential for these mainly local-scale operations.
A study highlighted earlier this year by the online small business and entrepreneur resource, FitSmallBusiness takes this point into consideration. Through focusing in on the primary factors aiding new businesses success, the company evaluated the nation’s top locations for the opportunities presented in each area to pinpoint where the best places for entrepreneurs in the US reside.
On The Top 15 Most Entrepreneurial Cities for 2018 list were three Texas cities, Dallas, Austin and Houston which came in the top ranks along with leading metropolitan areas like New York City, Los Angeles and Miami.
However as these areas do offer some of the best in lower regulations for businesses, available workforce, and cost effective allures; the lack of distribution in capital investment is hindering many cities from producing the next big commercial success.
An entrepreneur himself, AOL co-founder Steve Case’s recent Rise of the Rest Roadtrip tour brought to light this deficit for funding that is leaving many of today’s highest potential businesses unnoticed.
Visiting over 34 areas each with a growing entrepreneurial community in his mission to improve startups’ access to capital, Case shares the lack of capital for these smaller businesses in lesser recognized parts of the country as a leading issuing stunting the growth of entrepreneurs.
Resulting from the overly concentrated distribution of these funds going into only a few areas that have a history of success, long time economic dominators such as California, New York and Massachusetts are among the locations eating up the capital and hold nearly 75% of all investments for this business network.
This narrow sighted investing has left the remaining 49 US states to battle over the left over 25% with areas such as Texas receiving a mere 2% in capital investment funds for their business communities – an insubstantial amount for contributing to any sort of meaningful growth.
By identifying this lack of capital cash flow to areas like Texas and its leading metro of Dallas, the AOL co-founder emphasizes these as untapped opportunities available to investors who are looking to discover and get in early with the next global player.
Reiterating this point by using the interest of Amazon to potentially invest in Dallas for their next HQ2 facilities as an indicator of the area’s glowing commercial value and entrepreneur network, investors are urged to take a look around their own communities before faulting back to those with heightened competition and a crowded sea of interested investor parties.