The Top Five Up & Coming Cities for Young Entrepreneurs
The pandemic has given cities with access to relatively inexpensive but high-quality talent plus reasonable cost of living a new recipe for startup success.
In past years, entrepreneurs and potential startups were drawn to Silicon Valley, the place where Google, Apple, and Facebook all found their footing before growing at a rapid pace and developing satellite campuses across the globe. The formula for success has been a crucial mixture of venture capital, strong networks, and enough energetic talent to fuel a potential record-breaking organization. Other startup saturated cities outside of Silicon Valley included large metropolitan areas like New York City and Boston, which also could boast a similar mixture.
The future of entrepreneurship has also evolved, in part thanks to the 2020 global pandemic where remote work is looking to become a permanent opportunity for companies of all sizes. That being the case, recent studies have found that entrepreneurs are more spread out across the United States, and those numbers continue to grow in certain metro areas.
The magic formula, however, might be changing with the pandemic and is giving cities with access to relatively inexpensive but high-quality talent combined with reasonable cost of living are the new recipe for startup success. As other metro areas like Austin and Denver have seen an increase in expenses due to their popular nature, entrepreneurs and new small business owners are considering some new cost-effective options. Here are the top five cities that continue to show great growth opportunities for entrepreneurs in the coming years.
Madison, Wisconsin
Surrounded by four lakes of various sizes, this beautiful city offers a well-educated talent pool, with 57% of the population possessing a bachelor’s degree or higher. With low office rental prices and a reasonable cost of living, millennials are increasingly attracted to this Midwest city. This burgeoning startup scene offers plenty of tech jobs and an abundance of remote work, convincing recent college grads to stick around post-graduation. This small but mighty city has significant potential for young entrepreneurs and smart startups as has already been evidenced in recent years.
Average Median Income: $64,101
Venture Capital deals since 2016: 73
Plano, Texas
Just north of Dallas lies this thriving business hub, where quite a few large headquarters already call Plano home. Again, 57.5% of the population holds at least a bachelor’s degree, and the low cost of living and lack of state income and estate tax make it an attractive option for many. It’s located near the very-popular Dallas-Fort Worth area, so venture capital funding options are numerous. Plano was also voted one of the best cities for Hispanic entrepreneurs in 2019.
Average Median Income: $93,012
Venture Capital deals since 2016: 164
St. Paul, Minnesota
Another Midwest city joins the ranks, and although only 40.1% of its population holds a bachelor’s degree or higher, its proximity to the neighboring University of Minnesota makes it a great place to source top tech talent. With a wide range of entrepreneurial meetups, resources, and networking opportunities, this city boasts of a strong entrepreneurial ecosystem. Costs continue to remain reasonable for startups and entrepreneurs alike, as growth continues to climb at a steady pace year over year.
Average Median Income: $59,033
Venture Capital deals since 2016: 146
Cincinnati, Ohio
As a city with its own seed fund, CincyTech, who is funding more than 80 startups across the state with more than $55 million invested, this city is a strong contender for young entrepreneurs. Despite only a third of its population acquiring their bachelor’s or advanced degree, Cleveland is only a few hours away from large universities like The Ohio State University. Downtown Cleveland has over 85,000 square feet of coworking space, ready for entrepreneurs and startups to call it home. The cost of living can’t be beat – ranking among ten of the lowest cost cities analyzed in the report.
Average Median Income: $43,585
Venture Capital deals since 2016: 73
Durham, North Carolina
Home to Duke University and the University of North Carolina, it’s obvious that the city has a well-educated workforce of over 50% obtaining their bachelor’s degree or more. It’s proximity to Chapel Hill and Raleigh also offer great benefits when it comes to opportunities for budding startups and young entrepreneurs. With proven annual growth, Durham provides an awesome balance of reasonable office space pricing and mid-range cost of living, as well as plenty of nightlife and entertainment options to make it an attractive place to call home.
Average Median Income: $54,840
Venture Capital deals since 2016: 159
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