Top 11 cities to start a business in 2024

Entrepreneurs regularly establish new businesses throughout all of the United States, but a few places are more advantageous to start in than others. If you’re looking to start a new business, here are the top 11 best cities to locate your business in. You’ll find that these offer growing markets, pro-small business environments, geographic advantages, economic advantages and more.

1. Austin, Texas

The capital of Texas could be considered the capital of small businesses. Austin has a lively and growing community that strongly supports small businesses, including everything from local taco shops to fast-growing tech businesses.

Austin’s real gross domestic product (real GDP) was the highest in the nation in 2022, growing at a rate of 7.4%, and plenty of that stemmed from small businesses. The University of Texas at Austin’s student body of 50,000+ alone constitutes a small and highly educated city, and that’s not even considering Concordia University, Stephen F. Austin State University, or the several other schools in and around the city.

More broadly, Texas is the best state to start a small business. Texas has low LLC set up costs, and it’s widely known as a business-friendly state with low regulations. Don’t forget there’s no personal income tax, no corporate income tax, and a homestead exemption for a primary residence. Those details don’t just appeal to business owners, but also any employees you might want to hire.

The most successful entrepreneur ever, Elon Musk, relocated his business to Austin when Tesla relocated a few years ago. Plenty of other small business owners see what he does about the city, too.

2. Boulder, Colorado

Boulder, Colorado might be thought more of as a hipster ski town than a Silicon Valley, but a growing number of private equity and tech professionals are appreciating what Boulder offers. Several local venture capital firms are funding businesses, and there are successful startups ranging from fintech to sports (several of which have been acquired).

Akin to Austin, Boulder has a strong school, growing population, and thriving culture. The University of Colorado at Boulder’s 30,000+ students have long been the core of the city, but plenty has grown around that core. Perhaps the biggest difference between the two is snow (some 258 inches annually).

3. Appleton, Wisconsin

Appleton, Wisconsin isn’t the most well-known city for startups, but it has everything that small business owners typically look for.

Wisconsin is a business-friendly state with relatively low fees and favorable regulations. Appleton, specifically, is a small but growing city. Affordable housing, steady incomes, low unemployment, and a generally low cost of living make this attractive to everyone — entrepreneurs included.

Just make sure your business is Cheesehead-friendly if you establish it here. Appleton is just a little south of Green Bay.

4. Provo, Utah

Utah is one of the most affordable states to do business in, with a sub-5% corporate tax rate and reasonable regulations. It’s also a state where homes tend to be affordable, and schools tend to be good.

Within Utah, Provo is a special place for entrepreneurs. The “Silicon of the Slopes” has been home to a number of successful tech startups. Those successes helped create a climate where new businesses are viewed favorably, capital can be raised, and ultimately entrepreneurs succeed.

Provo is also where Brigham Young University is located. BYU brings a lively college vibe, highly educated workforce of graduates, and many bilingual students who have done a mission overseas.

5. Fargo, North Dakota

Fargo, North Dakota has been steadily going not just for a few years, but since at least 1990. That’s more than 30 years of getting new residents — and new businesses. The city continues to be a haven for entrepreneurs who want affordability.

Fargo’s location doesn’t make it the ideal location for a logistics company or entertainment venue. For entrepreneurs in consulting, ecommerce or anything remote, however, this is where affordability, potential, and favorable regulations converge. You’ll find plenty of resources from both the state and the city, to help your business succeed.

6. Las Vegas, Nevada

If you start a small business, there’s a good chance you’ll come to Las Vegas sometime. The city is home to some of the largest trade shows and conventions. Whether you’re in technology, broadcasting, toys and games, magic or concrete, there’s a good chance your industry’s premier event is here.

With so many shows located here, why not actually establish your business in the city? Vegas is no longer just about casinos and shows, but has a vibrant culture of tech startups, coworking spaces, and entrepreneurship.

You can get access to all of this without paying Boston or San Francisco home prices, as Vegas has home prices almost unmatched by any other similarly sized city. Just be sure to invest what you save on a house into your business, and not lose it on the blackjack table.

7. Midland, Texas

Think of Midland, Texas as the Fargo of the South. You won’t find the hippest community or most convenient location, but it has the affordability and incentives that lay a foundation for new businesses. That’s in addition to the low taxes and minimal regulations that Texas, in general, has.

Despite being ~4.5 hours from Dallas-Fort Worth, Midland has good transportation options for its location. The city boasts a commercial airport, and the interstates here were built to transport oil. You’ll have no trouble getting to and from your business’s offices when traveling.

As for property, you’ll find plenty of affordable locations for both your home and your business. Unless you need a location immediately adjacent to a space launch site, that is. Those spaces tend to cost substantially more, but you indeed can locate your business next to where satellites are being sent from.

8. Denver, Colorado

Again doubling up within states, Boulder’s big brother has much of what the college town offers. You’ll find a highly educated workforce, vibrant culture, and entrepreneurial mindset in a growing city.

Denver’s just brings the benefits of a larger city, with bigger infrastructure, more conventions, and easier transportation to and from. Consider here rather than Boulder (essentially a northwest suburb) if your business needs more affordable property, easier access to the airport, or simply doesn’t have to be directly in one of the hippest college towns.

9. Rochester, Minnesota

Rochester, Minnesota has been recognized as one of the top cities to retire to by AARP. It’s also one of the top cities to start a business in. That’s a win-win if you’re starting a business that sells to retirees, but this is a great place to establish almost any startup.

Rochester boasts a strong and growing population that’s educated and diverse, and it also has a surprisingly affordable housing market. Those factors, combined with Minnesota’s favorable corporate tax rate, make this a strong contender if your business can be located in the Midwest.

10. St. Louis, Missouri

St. Louis is an old city that’s becoming young. It was named the top city for Millennials by The Penny Hoarder, and indeed counts young adults as a large portion of its population. It also has many younger businesses, thanks to recent revitalization efforts that focus on creating jobs, increasing visitors, and improving the city overall.

Perhaps more important than being a good place to start a business, St. Louis is a good place to keep a business going. It has boasted the highest business survivability rate in the country, at 85.32%. That means the vast majority of new businesses that get started here continue to remain in business.

11. Nashville, Tennessee

Tennessee has one of the lower corporate tax rates and no state income tax. It also has a pro-business approach to regulation, and is flush with affordable housing throughout the state (including near Nashville).

Nashville, in particular, is a bustling city that’s full of culture, has multiple colleges, and continues to grow. Millennials, retirees, and pretty much everyone else have been moving to the Nashville area for several years.

Any business could do well here, but Nashville deserves special attention if you’re beginning a direct-to-consumer business. The city’s central location and excellent highways make it easy to send goods almost anywhere in the lower 48 within one or two days.

Find the right place for your business

If you’re starting a new business, take time to decide where it should be located. No matter what business you’re establishing, at least one of these cities almost certainly has what the business needs to succeed.

Featured image credit: delfi de la Rua/Unsplash