Over the past decade the idea of the startup entrepreneur has gone from the jobless vagabond to the cool future millionaire. Now a days cities are constantly rebranding themselves to try and attract the next 9 figure startup behemoth. With technology making it easier to create and grow a business, there are many opportunities for young companies to succeed in almost any industry.
Business.org recently released an article analyzing “300 North American cities, from sprawling metropolises to tiny burgs, and ranked each according to their start-up friendliness, as well as financial environments and demographic cultures.” The study was taken largely from the US Census Bureau and Kauffman Index’s 2017 Growth Entrepreneurship report. covering the same topic.
Below are the Business.org’s Top 5 American Cities for startups and entrepreneurs:
- San Francisco, CA
- Austin, TX
- Minneapolis, MN
- San Jose, CA
- Columbus, OH
Rankings were determined based on the following:
- Start-up growth rates were informed by the Kauffman report, which is based on U.S. Census Bureau data from Business Dynamics Statistics, and measures the average change in employment for start-ups during their initial five years. This accounts for 30% of the overall score.
- The rest of the score is based on data from the Census Bureau’s 2016 American Community Survey:
- Percentage of the population aged 25 to 34 accounts for 15% of the score.
- Employment rate for population ages 25 to 34, 20% of the score.
- Percentage of the population aged 25 to 34 holding a bachelor’s degree or higher, 20% of the score.
- Rent as a percentage of income, 15% of the score.
For the full list, check out the Business.org article below