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- Small businesses make up a staggering 99.9% of all businesses in the US, according to a 2018 report.
- To find the best cities for startups, software company Volusion took into account the percentage of workers employed by startups, startup density, and cost of living, among other factors.
- 1.9% of startups in the top city, Seattle, receive venture capital funding, making it a haven for fledgling businesses.
- Visit Business Insider’s homepage for more stories.
Almost every business in the US is a startup.
According to a 2018 profile by the US Small Business Administration, 99.9% of businesses in the country are startups (businesses with 500 or fewer employees).
To find out which cities were the best places to run a startup, software company Volusion analyzed the 2017 US Census Bureau Annual Survey of Entrepreneurs (ASE). They took into account factors like the percentage of workers employed by startups, startup density, and cost of living, among others.
The top city, which encompasses the Seattle-Tacoma-Bellevue area in Washington, is home to corporate giants Amazon, Starbucks, and Microsoft. Despite those big brands, Seattle is a haven for startups. Around 1.9% of Seattle startups receive venture capital funding — far more than businesses in any other city — which makes their chances of surviving and growing that much better.
Here are the 15 best cities for startups.
15. Minneapolis – St. Paul – Bloomington (Minnesota and Wisconsin)
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Entrepreneurship score: 81.34
Startup density: 7.8%
Percentage of firms receiving venture capital investment: 0.7%
Percentage of self-employed workers: 8.6%
Reason for starting business isn’t lack of work: 79.8%
The Twin Cities don’t just have startup accelerators or incubators — they have Twin Cities Startup Week, which gives entrepreneurs a chance to network and learn from one another.
14. Charlotte – Concord – Gastonia area (North Carolina and South Carolina)
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Entrepreneurship score: 81.75
Startup density: 10.3%
Percentage of firms receiving venture capital investment: 0.6%
Percentage of self-employed workers: 8.9%
Reason for starting business isn’t lack of work: 76.9%
In the growing world of fintech, Charlotte has emerged as the new industry’s capital, with companies like LendingTree setting up headquarters there. But it’s a great place for startups, too: the Charlotte Angel Fund is one of many Charlotte-based accelerators.
13. Atlanta – Sandy Springs – Roswell area (Georgia)
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Entrepreneurship score: 82.35
Startup density: 10.1%
Percentage of firms receiving venture capital investment: 0.7%
Percentage of self-employed workers: 10.7%
Reason for starting business isn’t lack of work: 76.1%
Atlanta is no stranger to big business: both Coca-Cola and Delta have their headquarters there. But Atlanta is also home to incubators like Atlanta Technology Village for new startups.
See the rest of the story at Business Insider
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Source: Business Insider – ideluce@businessinsider.com (Ivan De Luce)