The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
If you’re considering starting your own business, it’s important to weigh several factors. Even in today’s remote work environment, the location of your business remains crucial. Many of America’s rapidly expanding industries are closely tied to thriving local economies. The long-term success of a small business frequently depends on the resources accessible to its owner. Thus, despite the shift towards working remotely, the physical location of your business significantly impacts its enduring success.
To answer this, The Credit Review undertook a detailed study of major metropolitan areas in the United States. The analysis looks at a range of factors determining how favorable or unfavorable these areas are for small businesses. Focusing on the five industries predicted to grow substantially in the next ten years, the study pinpoints the 25 best metropolitan areas in the U.S. for both rapid and enduring success in small business ventures.Highlights:
- Austin, Texas was ranked #1 as the best place to start a business.
- Provo, UT ranks #2 and Raleigh, NC is #3
- Top metro area clusters are in Texas, Utah, and Florida
- California and the North East fare poorly, mainly due to business-friendliness factors
Florida, the (Almost) Tax-Free Haven: Florida is home to the most tax-friendly MSAs for businesses, thanks to its minimal tax burden and relaxed regulations. It’s a small business paradise, from Orlando to Miami to Fort Myers, especially since only traditional corporations pay state income tax here.
Growth Equals Opportunities: While a booming population doesn’t guarantee small business success, it’s a big plus. High-ranking MSAs like Boise City, Idaho, and Provo, Utah, aren’t just growing fast; they’re proof that smaller, thriving communities offer great potential for business growth and a desirable lifestyle.
Here’s a map of the findings — 100 Largest Metros: Ranking U.S. Metros by Best for Small Businesses (and their top fast-growth sector):
Methodology: The study compared the 100 largest MSAs in the United States across fast-growth and small business-survivability indicators such as: population change, GDP, the state of fastest-growing service sectors based on BLS growth projections for 2021-2031 in each MSA, and more. Sources include: Census, BLS, Tax Foundation, and U.S. Courts. See the full report for the detailed methodology.