Annual Ranking Of Best Large Cities To Start A Business
Several metros in the Sunshine State and Atlanta rank as the best large cities to start a business, according to WalletHub’s annual report released this week.
In total, Florida nabbed 4 of the Top 5 spots in the annual ranking, while Florida metros and Atlanta combined for 6 of the Top 10 spots. The other four were located in North Carolina (Charlotte, Durham) and Texas (Austin, Fort Worth).
And many of the new businesses formed in Florida and Atlanta over the past few years aren’t just surviving, they are thriving thanks to pro-business policies at the state level encouraging aspiring entrepreneurs to flex their capital and creativity here in the Southeast.
In fact, a five-year business-survival rate was just one of the 19 metrics that went into the WalletHub report which ranks the business climate and opportunities in 100 U.S. metros. (Scroll below to see where your favorite cities ranked.)
Considering that one out of every five startups closes during the first year of operations, WalletHub emphasizes the importance of choosing a city “that provides an environment where new businesses can thrive, with enough capital, workers and customers to keep it going long-term.”
Orlando Named Best Large City To Start A Business
Orlando was named the best large city to start a business in the 2024 WalletHub report which points out that the number of new small businesses has grown faster in Orlando than in most other cities.
WalletHub attributes the high number of startups in Orlando to the high number of investors per capita providing ample funding for new ventures, as well as strong population growth of both young workers (labor) and older retirees (customers).
Entrepreneurs living on a tight budget need an affordable place to live, and Orlando ranks as the most affordable large Florida metro for buying a house or renting an apartment according to this March 2024 article in Forbes.
In addition to capital and affordability, Orlando is an attractive destination for startups given the city’s central location with easy access to both coasts, major interstates like I-4, the busiest airport in Florida, and high-speed rail service to South Florida thanks to Brightline.
Tampa Named Second Best City To Start A Business
Speaking of Brightline, the next leg of the high-speed rail service will hopefully connect Orlando and Tampa, the second best large city to start a business, according to the WalletHub report. Tampa actually moved up three spots this year from its #4 ranking in the 2023 report.
WalletHub says Tampa’s appeal for entrepreneurs is similar to Orlando’s profile: a high number of investors per capita, a high survivability index for recent startups and affordability. In terms of housing, Tampa is the second most affordable large metro after Orlando, according to Zillow and the aforementioned Forbes article.
Jacksonville & Miami Help Florida Round Out The Top 5
Jacksonville and Miami helped the Sunshine State fill out 4 out the Top 5 spots in the 2024 ranking of Best Large Cities To Start A Business. While Charlotte moved up five spots to #3, Jacksonville and Miami each slipped two spots to claim the #4 and #5 spots, respectively.
Jacksonville received high marks for its “Business Environment” (#5) and “Business Costs” which, at #13 among 100 metros, makes it one of the most affordable cities in Florida and the Southeast.
WalletHub’s overall “Business Environment” score is an aggregate of several factors including Startups per Capita, 5-year Business Survival Rate, Industry Variety, Average Growth of Business Revenue and Overall Job Growth.
WalletHub’s overall “Business Costs” score is an aggregate of several cost of doing business factors including Office Space Affordability, Labor Costs, Corporate Taxes and the Overall Cost of Living index.
Miami was named the fifth best large city in the country to start a business and actually earned the #2 ranking for best Business Environment. That score was offset by Miami’s middle-of-the-pack rankings for “Business Costs” (#55) and Access to Resources (#52).
WalletHub’s overall “Access to Resources” score is an aggregate of several venture capital and human capital scores. Miami’s scores in both categories would have been much higher if the WalletHub analysis focused on the greater metropolitan area and surrounding communities rather than just the city proper.
Atlanta Moves Up To The Sixth Spot In Annual Ranking
Atlanta was named the sixth best large city in the country to start a business in WalletHub’s 2024 report. The A moved up one spot from the 2023 ranking when it took the #7 spot ahead of Charlotte, Fort Worth and Austin.
Atlanta received high marks for its overall Business Environment (#10), while its scores for Access to Resources and Business Costs were almost in the top third of all 100 metros coming in at #35 and #36, respectively.
Just like last year, Fort Worth and Austin once again slotted right behind Atlanta in the 2024 ranking of best large cities to start a business, according to WalletHub.
St. Petersburg Rounds Out Top 10 Best Cities To Start A Business
St. Petersburg was one of the metros posting the largest year-over-year improvement having ranked #18 in the 2023 WalletHub ranking.
While St. Pete received high marks for Business Environment (#7) and Business Costs (#19), The Sunshine City was near the bottom of the pack in terms of Access to Resources (#93) reflecting a relative dearth of venture and human capital in the city proper but not necessarily in the Tampa Bay metropolitan area which is the country’s 17th-largest metro with a population approaching 3.5 million.
You can read the full 2024 WalletHub Best Large Cities to Start A Business report and see the rankings for all 100 metros here.
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