What are the best cities to start a business in the US and why?

The number of people who decide to start a new business is growing in the United States. According to a report from the Chamber of Commerce, the quantity of applications submitted to start new businesses has increased in recent years.

Applications doubled in 2020 compared to recent years, with more than five million applications filed in 2021 and 2022, according to the U.S. Census Bureau. This trend only accelerated in 2023, with a record number of 5.5 million new commercial applications filed.

Regarding the reasons why there are more and more new businesses, the Chamber of Commerce explains that the new economic needs that arose as a result of the coronavirus pandemic, as well as changing preferences of consumers, created more circumstances for new businesses to be started.

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“Many individuals turned their ideas and hobbies into a business that could be run from home, and the number of e-commerce retailers skyrocketed,” the Chamber reports.

The report also notes that professional and business services have seen an uptick as entrepreneurs capitalized on the need for consulting services.

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The best cities to start a business in the United States

Entrepreneurship allows people to earn income, but it is not such a simple endeavor. According to figures from the Bureau of Labor Statistics, just over a fifth of businesses do not survive to the end of their second year.

Although opening a business is a challenge no matter where you seek to do so, in some places there are some advantages when you are trying to become an entrepreneur.

According to a USA TODAY report which analyzes 46 of the most popular cities in the United States, based on net business births, net job creation rate, business entry rate, companies, company exit rate, employment in startups as a percentage of total employment, households with self-employment, income, unemployment and GDP growth, these are the best cities to start a business: