Launching a small business is an exciting venture that opens up numerous opportunities. According to the article, “new business applications have reached historic highs. In fact, new business applications reached a ten-year peak in early October 2020. That’s a 40% increase compared to the same week in 2019.”
A recent Lantern Credit report on the best cities to start a business demonstrates that there are 15 cities in the US that rise above the rest when it comes to providing a fertile location to start a small business. You can boost the odds that this is a success if you make wise decisions about where to begin this new enterprise. Here are the top 15 cities with populations of under 500,000 that you should consider for your next small business venture. Note that each city’s unique score is specified in this listing.
- Corpus Christi, Texas – 75.8
- Lubbock, Texas – 75.5
- Arlington, Texas – 75.1
- Buffalo, New York – 72.5
- Plano, Texas – 71.2
- Irvine, California – 70.9
- Durham, North Carolina – 70.4
- Tampa, Florida – 69.4
- Pittsburg, Pennsylvania – 69
- Orlando, Florida – 68.3
- Raleigh, North Carolina – 67.7
- Minneapolis, Minnesota – 67.4
- Cincinnati, Ohio – 67.3
- Anaheim, California – 67.1
- Gilbert, Arizona – 66.6
Methodology Used in Determining Rankings:
In order to determine what locations offer the most opportunity, Lantern Credit looked at 10 key factors in 50 cities with populations of less than 500,000. The population only encompassed the city limits and did not include the surrounding suburban areas.
Characteristics Taken Into Consideration:
These key characteristics include the overall cost of living, the cost of renting office space, average household income, the area’s walkability score, the number of locally owned businesses, the median age of the residents, the percentage of change in high propensity business applications (HPBAs), years in businesses for various operations in the state, average monthly sales, cost of living in the city, and employment rates.
Each factor was assigned 10 points. This gives each city considered the possibility to score up to 100. While most factors were specific to the city, some of the data that was examined came from the state level. Although affordability to start a new business was certainly a key consideration, it is important to look beyond just the dollars.
By taking all 10 of these factors into consideration, the report was able to identify certain trends. As each of these factors was taken into consideration, Lantern Credit was able to ascertain that there were certain cities that truly shined when it came to providing a wealth of opportunity for businesses looking to get off of the ground. This report is an invaluable resource for entrepreneurs trying to decide what locations throughout the country are ripe for new small business development.
While you can never guarantee that your small business will be a smashing success, choosing to launch it in one of these vibrant and receptive cities will put you in a better position to succeed.