Top 8 Best Cities to Launch a Business

Starting a business is a difficult endeavor, and deciding where to locate your company can be equally difficult. The good news is that numerous American cities have excellent business chances. With the assistance of organizations that research and rank the best cities for new small enterprises, we have developed this guide. To concentrate entirely on the most business-friendly places to launch your business, our rankings remove significant personal factors like the standard of public schools or crime rates. So keep reading to find out which city is best for you if you’re considering launching a business in the upcoming year.

What Characterizes a Great City for Small Business?

A city can be a wonderful site to launch a small business thanks to a variety of factors, both tangible and intangible. This includes the city’s character and the development of an entrepreneurial culture.

You can choose the city that is best for your new business by answering the questions below.

  • Is there room for new companies?
  • Is the populace open to experimenting and collaborating with startups?
  • Do city leaders actively seek to attract new enterprises by fostering business-friendly environments?

Many communities implement strategies to draw in new enterprises. Such as offering cash incentives or lowering entrance barriers by relaxing rules. Additionally, licensing will be made simple in cities that are more accommodating to small enterprises. And you won’t have to deal with as many intricate rules as you do now while you establish yourself.

Leading 8 Cities for Small Businesses

These are the top 8 cities in 2023 to start a business. These rankings are based on a variety of factors, including accessibility to regional resources like a strong labor force and a high percentage of firm survival.

1. Scottsdale, Arizona

Scottsdale is one of the greatest locations in America to launch a new business. This is because of its sizable workforce and tax-friendly environment. Its high self-employment rate and three times the annual average number of business applications are proof that it’s a terrific area for ambitious entrepreneurs to launch new businesses and be successful.

  • Population: 242,753
  • Employment: 141,869
  • Applications from businesses: 66,607
  • Rate of company survival: 68.9%
  • Self-employed 6.5%

2. Nashville, Tennessee

Nashville has a low unemployment rate and a 5.6% lower-than-average cost of living. Due to its high rate of business survival and useful services like the Nashville Entrepreneur Center, it is a top city for new firms.

  • Population: 692,587
  • Employed: 396,278
  • Applications for businesses: 12,753
  • Rate of surviving businesses: 71.6%
  • Independent work: 6.2%

3. Charlotte, North Carolina

In Charlotte, more than 70% of new enterprises continue to operate after the first three years. With a strong workforce of over 500,000 people in a tax-friendly city, small business owners have access to a large pool of potential employees.

  • Population: 879,709
  • Employment: 507,586
  • Applications for businesses: 27,064
  • 70% of businesses survive.
  • 1% of people are self-employed

4. Louisville, Kentucky

Due to its low unemployment rate (3.4%) and highly educated workforce (35.2% of the labor force has a bachelor’s degree or higher), Louisville is ranked as a small business-friendly city. Its cost of living is also 10.5% lower than the national average, making it a reasonable location for a business owner’s most recent endeavor.

  • Population: 628,594
  • Employment: 320,515
  • 10,573 applications for businesses
  • Rate of company survival: 68.8%
  • Self-employment rate: 5.1%

5. Atlanta, Georgia

In Atlanta, businesspeople seeking a big-city lifestyle will prosper. Due to its tax-friendliness and slightly reduced cost of living (2.1% below the national average), it is the largest metro region to cut our list.

  • Population: 496,461
  • Employment: 276 677
  • Applications for business: 51,935
  • Rate of surviving businesses: 66.6%
  • Self-employment rate: 5%

6. Austin, Texas

Few are aware that Austin beats San Francisco as the best location for IT startups. Despite being well-known as the Live Music Capital of the World. Austin appeals to new business owners due to its above-average business survival rate and lack of personal income taxes.

  • Population: 964,177
  • employed: 598,430
  • Applications for businesses: 23,042
  • 70% of businesses survive.
  • Independent work: 6.8%

7. Orlando, Florida

Due to its comparatively cheap cost of living (one point below the national average) and location in the tax-friendly state of Florida, Orlando is given a slot on the list.

  • Population: 309,154
  • Employed: 166,573
  • Applications for businesses: 40,053
  • Rate of company survival: 68.7%
  • Self-employed: 4.5%

8. Cary, North Carolina

Cary earns a spot on the top eight list thanks to its robust economy, a high percentage of business survival, and proximity to Raleigh, another business-friendly town.

  • Population: 176,987
  • Employment: 92,926
  • Applications from businesses: 18,600
  • 70% of businesses survive.
  • 7% of people are self-employed

How Can I Determine the Best City for My Situation?

It might be difficult to choose the best city for your particular scenario, which goes beyond just whether or not it is business-friendly.

Before determining which city to move to, you should assess your demands as an individual and those of your family. Entrepreneurs and small business owners should be aware that there is a risk involved if you start something new or rearrange your life.

Is Moving a Business a Challenge?

Even though your company is well established, you might choose to move to a city with lower taxes. The work of establishing your current company in a new place won’t be particularly challenging. But you will need to go over many of the first steps again. To be able to conduct business lawfully in your new city, this also includes licensing and incorporation.

Even though you’ll be leaving your current city or town, you don’t have to fire any of your top workers. Innovations in technology and remote work enable businesses to reach a wider audience throughout the nation or, in your case, to virtually bring your finest employees with you.

To Get Started, Collaborate with a Small Business Expert

Your Part Time Accountant has your back wherever you decide to relocate. We have professionals who have experience in your field working in all 50 states. Make an appointment for a brief consultation – typically lasting 30 minutes or less – to find out how our range of expert business services might reduce your tax burden.