The Hottest Locales for Small Business in the U.S.
by Amy Lignor
No, Silicon Valley is not being replaced. However, with the Kauffman Foundation releasing its annual Startup Activity Index last week showing, in detail, trends in U.S. business startups for 2017, it was revealed that California has been booted out of first place. The top spot for new businesses to be built and thrive in the United States has been taken over by the big, sunny city of Miami, Florida.
For those out there looking to not only land five minutes on “Shark Tank,” but also want to know where small businesses are thriving as opposed to hanging up For Sale signs in windows, they should most definitely read up on Kauffman’s latest data. Not only did Miami come in first overall but they also tied with L.A. for having the highest rate of new entrepreneurs – 0.56 percent. What that means is that in a given month 560 out of 100,000 adults living in Miami actually started a business in 2017, and there are nearly 108 startups for every thousand employer businesses currently operating in Miami.
Now this may not mean, of course, that all new businesses beginning in South Florida in 2017 will end up being venture-backed startups that succeed brilliantly. But when it comes to California losing the top spot, the major blow for that state comes in the form of San Francisco and San Jose dropping significantly where new business openings were concerned. The rate of new entrepreneurs giving it a go, so to speak, has declined dramatically in both areas; whereas the Miami startup scene grew by leaps and bounds when the Knight Foundation made 200+ investments totaling $25 million in entrepreneurs and their initiatives in South Florida. But they weren’t alone in doing so. StartupBootCamp, the largest helper of entrepreneurs stemming from Europe, began helping fund startups in the U.S. in 2015. Beginning in Miami in the digital health field, StartupBootCamp has truly helped Miami’s small business activity grow exponentially.
If looking at small business success on a slightly smaller-town angle, more data was released (WalletHub) in regards to where small businesses are doing the best in 2017, when it comes to opening in non-cities. Bigger is not always better when you’re talking about where to open up “a shop.” By comparing various locations using factors like, available workforce, cost of labor, office space, and growth potential, there are five specific smaller towns that rated extremely high for small business startups. Not only are they business friendly, but they are also worth making the move to live in.
If your particular business is something that would be more successful in a smaller pond, the locations of Holland, MI; Carbondale, IL; Springville, UT; East Chicago, IN; and Jefferson City, MO, come in as being the top five U.S. locations for producing successful new small businesses.
Flipping the coin over, whether you wish to live and open your new business in a big city or a smaller community, a multitude of data has been compiled and is out there waiting for you to research. But to narrow down that search even further, it is important to note ahead of time which five states scored the worst when it came to producing successful 2017 business startups.
For Hawaii, it is the state’s high cost of living that is the top challenge small business owners have to face, causing the state to come in dead last as being the worst for startups. Maine also comes in on the negative side of things. The state’s low density of startups is debatable, but the state also puts up extremely low productivity numbers, with $37,958 GDP per capita being the seventh lowest in the country. Along those same lines, Vermont has too many unemployed residents and only about 3,000 jobs open. On top of that, the costs are far too high for the small business to incur. Wisconsin and Arkansas round out the five states that new startups should most definitely stay away from in 2017.
So as you move forward researching the future of your business, know that the sunny world of Miami is, thus far, the right place to start.
Original Source: Baret News