Special Report
Large Cities Where Starting a Business is Worth the Risk
Published:
Last Updated:
Although the internet allows businesses to flourish anywhere, business owners and entrepreneurs still gravitate toward large cities. Why? Because despite their higher startup and operating costs, major metropolitans offer a slew of advantages smaller cities and towns cannot, mainly access to resources.
Large cities offer access to sizable and talented labor pools, investment capital, and suppliers and contractors — all important for a business to be able to grow. All those resources are close by in a large city, making networking much easier too. So rather than meeting over Zoom, business owners can meet face to face with potential partners and investors. Of course, other factors matter as well, including business climate and costs of living. This is the most expensive city in every state.
To identify the 50 best large cities to start a business, 24/7 Wall St. reviewed data from WalletHub, which ranked 100 large U.S. cities across three key dimensions — business environment, access to resources, and business costs — using 21 metrics like average business revenue growth for business environment, human capital availability for access to resources, and labor costs for business costs. 24/7 Wall St. added seasonally-adjusted estimates for June 2021 unemployment rates from the Bureau of Labor Statistics.
Most major cities also host colleges and universities that provide a steady pipeline of talent into the labor force. The city ranking No. 2 on this list, Durham, North Carolina, is home to Duke University, a leading research institution.
And if a business requires foot traffic to bring in potential customers, a large city is the place to be. Warm weather doesn’t hurt either, which is why Texas and California both have nine cities on this list. Lubbock and Laredo, Texas, rank third and first, respectively. But other Western cities ranked high, as well. Boise, Idaho, sits at No. 5, perhaps due to its booming tech sector. In fact, Boise was one of America’s fastest growing cities.
Although Western and Southern states like Florida offer a welcoming landing spot for new businesses, the Midwest isn’t completely off the radar. Indianapolis and Kansas City, Missouri, represent established Midwestern cities that remain attractive to entrepreneurs.
Click here to see large cities where starting a business is worth the risk.
50. Boston, Massachusetts
> Overall score: 55.71
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 5.7% — 34th lowest
> Population: 684,379
[in-text-ad]
49. Sacramento, California
> Overall score: 55.79
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 7.7% — 29th highest
> Population: 500,930
48. Birmingham, Alabama
> Overall score: 55.82
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.2% — 21st lowest
> Population: 212,297
47. Omaha, Nebraska
> Overall score: 55.84
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 3.3% — 3rd lowest
> Population: 475,862
[in-text-ad-2]
46. Fort Wayne, Indiana
> Overall score: 55.86
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.1% — 18th lowest
> Population: 265,752
45. San Antonio, Texas
> Overall score: 55.96
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.0% — 40th lowest
> Population: 1,508,083
[in-text-ad]
44. Greensboro, North Carolina
> Overall score: 55.97
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 6.0% — 41st lowest
> Population: 291,303
43. Las Vegas, Nevada
> Overall score: 56.03
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 9.7% — 11th highest
> Population: 634,773
42. San Francisco, California
> Overall score: 56.10
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 5.4% — 25th lowest
> Population: 874,961
[in-text-ad-2]
41. Mesa, Arizona
> Overall score: 56.22
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.3% — 49th lowest
> Population: 499,720
40. Wichita, Kansas
> Overall score: 56.31
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 6.5% — 49th highest
> Population: 389,877
[in-text-ad]
39. San Diego, California
> Overall score: 56.66
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.7% — 46th highest
> Population: 1,409,573
24/7 Wall St.
38. Houston, Texas
> Overall score: 56.75
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 7.2% — 37th highest
> Population: 2,310,432
37. Lincoln, Nebraska
> Overall score: 57.52
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 2.6% — the lowest
> Population: 283,839
[in-text-ad-2]
36. Aurora, Colorado
> Overall score: 57.57
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 7.5% — 32nd highest
> Population: 369,111
35. Los Angeles, California
> Overall score: 57.75
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 10.5% — 7th highest
> Population: 3,966,936
[in-text-ad]
34. Indianapolis, Indiana
> Overall score: 57.83
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.7% — 35th lowest
> Population: 864,447
24/7 Wall St.
33. Scottsdale, Arizona
> Overall score: 57.84
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 5.0% — 16th lowest
> Population: 250,602
32. Stockton, California
> Overall score: 57.88
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 10.3% — 8th highest
> Population: 309,228
[in-text-ad-2]
31. Madison, Wisconsin
> Overall score: 57.97
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 3.6% — 4th lowest
> Population: 254,977
30. Oakland, California
> Overall score: 58.02
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 7.6% — 31st highest
> Population: 425,097
[in-text-ad]
29. Honolulu, Hawaii
> Overall score: 58.09
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 7.1% — 40th highest
> Population: 348,985
28. New Orleans, Louisiana
> Overall score: 58.15
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 12.0% — 2nd highest
> Population: 390,845
27. Fresno, California
> Overall score: 58.29
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 8.6% — 18th highest
> Population: 525,010
[in-text-ad-2]
26. Long Beach, California
> Overall score: 58.33
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 10.8% — 4th highest
> Population: 466,776
25. Phoenix, Arizona
> Overall score: 58.43
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 7.1% — 39th highest
> Population: 1,633,017
[in-text-ad]
24. Miami, Florida
> Overall score: 58.74
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 7.0% — 41st highest
> Population: 454,279
24/7 Wall St.
23. Arlington, Texas
> Overall score: 58.94
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.2% — 45th lowest
> Population: 395,477
22. Irving, Texas
> Overall score: 59.03
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.0% — 42nd lowest
> Population: 239,783
[in-text-ad-2]
21. Denver, Colorado
> Overall score: 59.15
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 6.7% — 45th highest
> Population: 705,576
20. Irvine, California
> Overall score: 59.45
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 5.8% — 37th lowest
> Population: 273,157
[in-text-ad]
19. Nashville, Tennessee
> Overall score: 60.28
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 5.1% — 19th lowest
> Population: 663,750
18. Kansas City, Missouri
> Overall score: 60.34
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 6.6% — 47th highest
> Population: 486,404
17. Jacksonville, Florida
> Overall score: 60.63
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.5% — 27th lowest
> Population: 890,467
[in-text-ad-2]
16. Colorado Springs, Colorado
> Overall score: 60.64
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 6.5% — 48th highest
> Population: 464,871
15. Winston-Salem, North Carolina
> Overall score: 60.65
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.5% — 28th lowest
> Population: 244,115
[in-text-ad]
14. Dallas, Texas
> Overall score: 60.78
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.4% — 50th lowest
> Population: 1,330,612
13. Reno, Nevada
> Overall score: 60.80
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 5.0% — 17th lowest
> Population: 246,500
12. St. Petersburg, Florida
> Overall score: 61.19
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.2% — 22nd lowest
> Population: 261,338
[in-text-ad-2]
11. Atlanta, Georgia
> Overall score: 61.74
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 5.9% — 39th lowest
> Population: 488,800
10. Tampa, Florida
> Overall score: 61.78
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 5.5% — 29th lowest
> Population: 387,916
[in-text-ad]
9. Fort Worth, Texas
> Overall score: 62.10
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 6.7% — 44th highest
> Population: 874,401
8. Austin, Texas
> Overall score: 62.45
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 4.5% — 12th lowest
> Population: 950,807
7. Raleigh, North Carolina
> Overall score: 62.59
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 4.5% — 13th lowest
> Population: 464,485
[in-text-ad-2]
6. Charlotte, North Carolina
> Overall score: 62.63
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 5.1% — 20th lowest
> Population: 857,425
5. Boise, Idaho
> Overall score: 63.37
> Best ranking business aspect: Business Environment
> Unemployment rate in June 2021: 3.0% — 2nd lowest
> Population: 226,115
[in-text-ad]
4. Orlando, Florida
> Overall score: 63.58
> Best ranking business aspect: Business Costs
> Unemployment rate in June 2021: 6.2% — 46th lowest
> Population: 280,832
3. Lubbock, Texas
> Overall score: 63.79
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 5.7% — 36th lowest
> Population: 253,851
2. Durham, North Carolina
> Overall score: 63.95
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 4.3% — 7th lowest
> Population: 269,702
[in-text-ad-2]
1. Laredo, Texas
> Overall score: 64.97
> Best ranking business aspect: Access to Resources
> Unemployment rate in June 2021: 7.6% — 30th highest
> Population: 259,151
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
