Best Cities for Young Entrepreneurs 2023

1. Midland, TX

After not even cracking the top 100 cities for population growth the year before, Midland’s growth rate of 4.32% in the most recent year available was the highest in the nation.

With this growth comes prosperity, as demonstrated by the 47.1% of Midland’s 18-to-24-year-old population earning at least three times the poverty level. That’s nearly 10% better than the national average of 37.4%.

While Texas is not one of the best states in terms of its business tax environment, the Tax Foundation does rate it as better than average.

The one area of concern about starting a business in Midland is that you should think carefully about what kind of workforce you need and where that workforce would come from. With 27.6% of its young adult population holding at least a bachelors degree, Midland is a little below the national average of 28.7%.

2. Crestview/Fort Walton Beach/Destin, FL

This sector of Florida’s panhandle is considered as a single metropolitan area by the Census Bureau. It also can be considered fertile ground for business startups. After tying for fifth in this study last year, the Crestview area rose to second due to its all-round favorable characteristics.

Crestview/Fort Walton Beach/Destin was above average for growth rate, youth affluence and young-adult education. Also, from a tax standpoint, it helps to be based in Florida.

The Tax Foundation rated Florida fourth nationally for overall business tax environment.

3. (tie) North Port/Sarasota/Bradenton, FL

The west coast of Florida is popular with tourists and retirees alike, and should also be a magnet for young entrepreneurs.

North Port/Sarasota/Bradenton tied with the Crestview area for fifth last year and, like Crestview, improved its ranking this year.

Clearly, young adults in the North Port area are thriving, with 51.2% of 18- to 24-year-olds earning at least three times the poverty level. That ranks it first in youth affluence among the 25 fastest-growing cities in the U.S.

3. (tie) St. George, UT

This city in the southwest corner of Utah finished 10th in this study last year and now has improved to a tie for third place.

Over the past year, it was the third-fastest-growing city in the nation and, with 44.9% of young adults earning at least three times the poverty level, it represents an affluent market.

It also helps that Utah’s business tax environment was rated one of the ten best overall by the Tax Foundation.

5. Raleigh, NC

Though it has slipped a little from last year’s second-place ranking, Raleigh still presents some promising characteristics to young entrepreneurs.

Fully 46.2% of young adults there have at least a bachelors degree, and 44.2% of them earn at least three times the poverty level. So Raleigh offers both a well-educated talent pool and an affluent market to tap into.

6. Provo/Orem, UT

Like St. George, the Provo/Orem metropolitan area benefits from Utah’s favorable tax climate. It also is one of the ten fastest-growing metro areas in the nation.

At 41.3% of 18- to 24-year-olds holding at least a bachelors degree, the city has a well-educated, young-adult population.

Though it was unable to repeat last year’s number-one ranking in this study, Provo/Orem still looks like an excellent location for young entrepreneurs.

7. (tie) Austin/Round Rock, TX

Among other things, the Austin/Round Rock metropolitan area should get credit for consistency, as this is a repeat of last year’s seventh-place ranking. Its greatest strength is a well-educated population of young adults, with 44.8% holding at least a bachelors degree.

7. (tie) Bend/Redmond, OR

This is one of the ten fastest-growing metropolitan areas in the nation, and Oregon also ranks in the top ten for business-tax environment. Throw in an above-average proportion of young adults with at least a bachelors degree and it’s easy to see why a startup might flourish here.

9. Orlando/Kissimmee/Sanford, FL

This central Florida community repeats last year’s ninth-place ranking thanks primarily to a well-educated, young-adult population and Florida’s favorable business-tax environment.

10. (tie) Daphne/Fairhope/Foley, AL

Though it may not be well-known nationally, this metropolitan area has a strategic location just across the bay from Mobile, Alabama and not far west from Pensacola, Florida.

Though Alabama’s business-tax environment is not particularly favorable, the Daphne/Fairhope/Foley region scored very well for affluence with 46.8% of its young-adult population earning at least three times the poverty rate.

10. (tie) Greeley, CO

After falling not far outside the top ten last year, Greeley moves up this year thanks largely to being one of the ten fastest-growing cities in the nation. With 40.7% of its 18- to 24-year-olds earning at least three times the poverty rate, Greeley demonstrates that it is a place where young entrepreneurs can thrive.

These are just 11 cities and, naturally, they are not the only places in the United States where a new business could thrive. However, this analysis is intended to point out just how much of a difference location can make, and what local factors a young entrepreneur should consider in deciding where to start a business.