Best Cities for Young Entrepreneurs 2023
Even in today’s online, multi-national, commercial environment, location is still a key factor for many business startups.
Where can a young person make a mark as a business owner?
A new business idea is like a seed. No matter how much potential that business plan contains, where you plant it matters.
That’s why MoneyRates.com studied a combination of factors to identify the best cities to start a business for young entrepreneurs – it helps clarify locations that can support entrepreneurs as they launch.
Young Entrepreneurs: Choosing the Best Cities for Startups
We looked at four factors that can influence new businesses: population growth, affluence, education, and taxes. Here’s why:
- The growth and affluence of local markets can help new products and services find its audience
- The size and quality of the local talent pool can determine how easy it is for a startup to staff for success
- Each area’s tax environment affects what kind of profit margin you can earn
Here is how MoneyRates chose the best cities to start a business:
The focus was to examine the 25 fastest-growing cities in the United States based on information from the U.S. Census Bureau. Population growth not only means an influx of new consumers, but it suggests a general prosperity that creates a positive business environment.
MoneyRates also considered affluence among young adults. The percentage of a city’s 18- to 24-year-old population (again, based on Census Bureau data) earning at least three times the poverty level indicates the strength of a market for new products and services. It also points to how conducive the area generally is to a young person’s success.
To identify areas where a well-educated workforce would likely to be available, MoneyRates looked at the percentage of 18- to 24-year-olds in each city with a bachelors degree or better based on Census Bureau data. This not only points to a rich talent pool, but also a city’s market of potential high-earners.
Finally, using the Tax Foundation’s ranking of state business tax environments, MoneyRates graded each of the high-growth cities based on the combination of tax factors that affect a business.
The 25 fastest-growing cities were ranked based on all of the above criteria, and then the average of these rankings was used to determine the best places for millennials to start a business in 2023.
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Highlights: Disparities Among the Best Cities for Startups
Under analysis, the data reveals that extreme regional differences exist, underscoring how much location matters for young entrepreneurs starting a business. Here are some of the examples we chose to highlight:
- 94 metropolitan areas in the United States saw their populations shrink over the most recent year – not a good sign for a business seeking to tap new markets.
- Of the cities that grew during the past year, only 26 saw growth of more than 2%.
- In terms of access to a well-educated workforce, 36 cities in the U.S. have young adult populations with 40% or more holding bachelors degrees or better.
- In contrast, in 56 U.S. cities, the portion of the young adult population with a bachelors degree or better is less than 20%.
- In 20 U.S. cities, a lack of affluence among young adults does not promise a great environment for success, with less than 20% of 18- to 24-year-olds earning at least three times the poverty level.
- There are 146 cities in the U.S. where 40% or more of young adults earn at least three times the poverty level.
- Taxes can be a headwind or a tailwind to success. This presents a complex mix of factors to assess because — besides corporate taxes taking their cut from a business — personal, sales, property and unemployment insurance taxes can affect the bottom line.
Best places for millennials to start a business in 2023
Are you a young adult thinking about starting a business in 2023?
Here’s an immediate bonus for you: MoneyRates intended to determine the ten best cities for startups in 2023; but due to a tie for tenth place, the list actually offers 11 cities.
Here are those 11 locations and some highlights about what makes them the best places for millennials to start a business in 2023.
Here is the full listing of best cities for entrepreneurs in 2023:
|1||Midland, TX Metro Area|
|2||Crestview-Fort Walton Beach-Destin, FL Metro Area|
|3||North Port-Sarasota-Bradenton, FL Metro Area|
|3||St. George, UT Metro Area|
|5||Raleigh, NC Metro Area|
|6||Provo-Orem, UT Metro Area|
|7||Austin-Round Rock, TX Metro Area|
|7||Bend-Redmond, OR Metro Area|
|9||Orlando-Kissimmee-Sanford, FL Metro Area|
|10||Daphne-Fairhope-Foley, AL Metro Area|
|10||Greeley, CO Metro Area|
|12||Lakeland-Winter Haven, FL Metro Area|
|13||Boise City, ID Metro Area|
|14||Sebastian-Vero Beach, FL Metro Area|
|15||Cape Coral-Fort Myers, FL Metro Area|
|15||Coeur d’Alene, ID Metro Area|
|15||Odessa, TX Metro Area|
|18||Las Vegas-Henderson-Paradise, NV Metro Area|
|19||Olympia-Tumwater, WA Metro Area|
|20||Phoenix-Mesa-Scottsdale, AZ Metro Area|
|21||Myrtle Beach-Conway-North Myrtle Beach, SC-NC Metro Area|
|21||Sherman-Denison, TX Metro Area|
|23||Idaho Falls, ID Metro Area|
|24||Clarksville, TN-KY Metro Area|
|25||Spartanburg, SC Metro Area|