Every month, thousands of employed people and job seekers leave the traditional workday—or abandon the job hunt—and take the leap into entrepreneurship. Where an entrepreneur chooses to launch a business can significantly affect its chances of success: some cities simply offer better conditions for startups than others.
WalletHub researched and compared 100 major U.S. cities to determine which locations offer the strongest advantages for new businesses. The analysis scored and weighted each city from 1 to 100 across three main categories:
- Business environment: average workweek length, small-business growth, startups per capita, growth in small-business revenue, business survival rate, industry diversity, job growth, and an entrepreneurship index.
- Access to resources: access to financing, venture capital investment per capita, presence of investors, available workforce, share of college-educated residents, and growth in the working-age population.
- Business costs: labor costs (double weighted), office-space affordability, cost of living, and corporate taxes.
Below are the top 25 cities from that study—places that may offer a strong environment for launching your next venture.
25. Los Angeles, California
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Business environment rank: 16
Access to resources rank: 22
Business cost rank: 86
Total score: 53.99
Los Angeles’s Silicon Beach startup scene continues to challenge Silicon Valley. The area hosts hundreds of startups and significant private valuations, driven by a strong talent pool, industry variety and an active investor community—though business costs remain high.
24. Hialeah, Florida
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Business environment rank: 28
Access to resources rank: 96
Business cost rank: 14
Total score: 54.09
Hialeah stands out for affordability and low labor costs. As a populous city with a strong Cuban and Cuban-American community, it offers a cost-effective base for new businesses—especially those sensitive to labor and overhead expenses.
23. Lubbock, Texas
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Business environment rank: 54
Access to resources rank: 6
Business cost rank: 54
Total score: 54.12
Lubbock is attractive for entrepreneurs seeking financing and university connections. Texas Tech University and its Innovation Hub provide networking, events and resources that help fledgling companies access capital and local talent.
22. Tulsa, Oklahoma
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Business environment rank: 60
Access to resources rank: 56
Business cost rank: 6
Total score: 54.25
Tulsa offers very low business costs and a network of incubators and maker spaces. Programs like Tulsa Remote also incentivize remote workers to relocate, helping widen the available talent pool for local startups.
21. Aurora, Colorado
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Business environment rank: 19
Access to resources rank: 87
Business cost rank: 44
Total score: 54.36
Aurora benefits from proximity to Denver while offering lower living and operating costs. Colorado’s vibrant startup culture produces frequent new businesses, and Aurora captures some of that momentum at a more affordable price.
20. Irvine, California
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Business environment rank: 10
Access to resources rank: 1
Business cost rank: 97
Total score: 54.65
Irvine ranks at the top for educated residents and access to talent, but it is expensive. High education levels and strong workforce quality make it a solid choice for knowledge-intensive startups if you can cover the cost of doing business.
19. Oakland, California
David Mark / Pixabay
Business environment rank: 7
Access to resources rank: 10
Business cost rank: 92
Total score: 54.83
Oakland hosts a growing startup community and high average tech salaries. The city aims to expand its entrepreneurship scene while balancing community priorities; however, office space and labor costs are among the city’s higher expenses.
18. Laredo, Texas
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Business environment rank: 43
Access to resources rank: 14
Business cost rank: 43
Total score: 55.5
Laredo is a major trade hub with significant cross-border commerce. Entrepreneurs focused on logistics, import/export or international trade may find strong opportunities given the city’s high volume of trade activity.
17. Irving, Texas
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Business environment rank: 5
Access to resources rank: 37
Business cost rank: 79
Total score: 55.75
Irving posts strong business-environment metrics, including long average workweeks that reflect a committed workforce. The city benefits from being part of the Dallas–Fort Worth metro, with access to regional capital and talent.
16. San Antonio, Texas
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Business environment rank: 8
Access to resources rank: 58
Business cost rank: 62
Total score: 56.2
San Antonio’s startup ecosystem benefits from nonprofit programs, university partnerships and growing venture interest. Organizations connect students and entrepreneurs, while the region continues to attract venture funding.
15. Dallas, Texas
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Business environment rank: 11
Access to resources rank: 33
Business cost rank: 70
Total score: 56.32
Dallas shows strong small-business growth and attracts sizable venture capital. Local events like Dallas Startup Week help founders connect with investors, mentors and peers across the metro area.
14. St. Petersburg, Florida
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Business environment rank: 32
Access to resources rank: 68
Business cost rank: 11
Total score: 56.61
Florida’s lack of state income tax and relatively low corporate taxes make St. Petersburg appealing for cost-sensitive startups. The city also has growing coworking and tech resources and is pursuing more venture capital to support its tech sector.
13. Houston, Texas
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Business environment rank: 4
Access to resources rank: 55
Business cost rank: 67
Total score: 56.62
Houston’s diverse economy and strong job market support startup activity. The region sees steady new-business formation and has a broad base of investor interest, with notable growth in women-owned startups and diverse industry sectors.
12. Jacksonville, Florida
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Business environment rank: 24
Access to resources rank: 77
Business cost rank: 9
Total score: 56.77
Jacksonville’s tech sector has grown steadily, offering competitive wages below national averages and a track record for attracting young professionals. However, entrepreneurs may find financing access more limited here than in bigger markets.
11. Fort Worth, Texas
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Business environment rank: 3
Access to resources rank: 24
Business cost rank: 74
Total score: 57.65
Fort Worth benefits from the broader Dallas–Fort Worth metro’s strong investor returns and substantial capital flows. The area has seen significant VC investment and consistent small-business growth.
10. Denver, Colorado
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Business environment rank: 14
Access to resources rank: 18
Business cost rank: 59
Total score: 58.03
Denver is a hot market for new firms, with a high share of businesses under one year old and strong appeal to millennials. The city scores well for job availability and quality of life, even as housing costs have risen.
9. Atlanta, Georgia
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Business environment rank: 26
Access to resources rank: 19
Business cost rank: 27
Total score: 58.13
Atlanta’s startup ecosystem ranks well globally, with strong talent and growing venture activity. Talent availability can be competitive, but the metro’s size and diversity support a wide range of startup opportunities.
8. Raleigh, North Carolina
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Business environment rank: 40
Access to resources rank: 3
Business cost rank: 23
Total score: 58.61
Raleigh’s Research Triangle is a major draw for life-sciences and tech startups. Strong VC returns and substantial venture funding make the region a fertile ground for growth-stage companies and research-driven ventures.
7. Durham, North Carolina
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Business environment rank: 39
Access to resources rank: 11
Business cost rank: 18
Total score: 58.86
Durham combines affordable office space with strong funding trends across North Carolina. The city’s growing startup culture and appeal to younger professionals make it a compelling and cost-effective place to launch a business.
6. Charlotte, North Carolina
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Business environment rank: 18
Access to resources rank: 28
Business cost rank: 29
Total score: 59.03
Charlotte’s favorable corporate tax climate and presence of major financial and corporate headquarters help support startup growth. The city leads in small-business expansion and offers a relatively affordable cost of living for founders and employees.
5. Tampa, Florida
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Business environment rank: 20
Access to resources rank: 39
Business cost rank: 16
Total score: 59.29
Tampa’s affordable living costs and investor initiatives have helped build an active startup community. Local investors and development projects are positioning the region as an emerging innovation hub.
4. Austin, Texas
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Business environment rank: 1
Access to resources rank: 5
Business cost rank: 83
Total score: 60.05
Austin consistently ranks as one of the best U.S. cities for entrepreneurs, with strong new-business growth, vibrant tech communities and ample networking opportunities. Cost pressures are rising, but the city’s momentum and quality of life remain powerful draws.
3. Miami, Florida
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Business environment rank: 2
Access to resources rank: 45
Business cost rank: 30
Total score: 60.48
Miami has grown rapidly as a startup hub, fueled by venture funding, accelerator programs and a dense network of coworking spaces. The city attracts international capital and talent, though availability of on-the-ground human capital can be competitive.
2. Oklahoma City, Oklahoma
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Business environment rank: 12
Access to resources rank: 40
Business cost rank: 10
Total score: 60.73
Oklahoma City has invested in building a supportive startup ecosystem with nonprofit capital providers, coding bootcamps and university innovation hubs. These resources make it an increasingly attractive, affordable place to grow a new company.
1. Orlando, Florida
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Business environment rank: 6
Access to resources rank: 50
Business cost rank: 17
Total score: 60.93
Orlando has rapidly expanded its startup infrastructure—incubators, investment groups, venture funds and weekly entrepreneur meetups make the city a lively place to launch a business. Strong population growth and a growing startup culture have helped Orlando rise to the top of this ranking.