Best Cities to Run a Small Business and Why

Four of the Best Cities to Start a Small Business

There are a bunch of articles online that list the top cities for running your small business. And sure, there are some great cities on the list, but none of these sources seem to agree on a solid list of which cities really are the best.

After doing a crosshatch directory of the results between four different articles (ones from CNBC, Entrepreneur, Forbes, and Kiplinger) we found that only four cities were included in each of their lists. So wonder no more as to where to cultivate your small business! Consider one of these four “best of the best” locations to launch your startup:

Austin, TX

Metro population: 2 million
Number of small businesses per 10,000 people: 136
Cost of living for self-employed: 5% below US average Why it’s attractive:

• No state, individual, or corporate income taxes
• Highly educated workforce
• It ranks fifth in the nation for its ability to attract and retain tech talent
• It was named the #1 place in America to start a business by CNBC
• It was named the “top city for small business vitality” by American City Business Journals

Denver, CO

Metro population: 2.8 million
Number of small businesses per 10,000 people: 172
Cost of living for self-employed: 6% above US average
Why it’s attractive:

• The cost of doing business is 1.6% less than the national average
• The cost of doing business for software and video game developers is 4.3% below the national average
• The cost of doing business for biotech companies is 6.2% below the national average
• The average salary is above the national average
• The workforce is well-educated
• Denver’s Small Business Development Center is well-integrated with the business community, which is particularly useful to startups

Des Moines, IA

Metro population: 611,549
Number of small businesses per 10,000 people: 133
Cost of living for self-employed: 9.9% below US average
Why it’s attractive:

• The cost of doing business here is 17% less than the national average
• Home prices are below the national average
• The Greater Des Moines Partnership and Square One DSM are just two of the many helpful resources available to entrepreneurs and startups
• The city’s economic development office offers a host of excellent financing options for small businesses. (Speaking of financing, check out our tips to save on your business taxes.)
• Once considered one of the dullest cities in America, Des Moines is now one of the “coolest” according to Politico magazine.

Salt Lake City, UT

Metro population: 1.1 million
Number of small businesses per 10,000 people: 146
Cost of living for self-employed: 5.1% below US average
Why it’s attractive:

• Individual and corporate tax rates are only 5%
• The cost of doing business is 3.4% below the national average
• The workforce is young, with a median age of 30.9 years old (6.3 years younger than the national median), which is helping to boost tech businesses there
• Small businesses can utilize the city’s valuable resources including:
• Startup Connectory - lists all of Utah’s entrepreneur groups, associations, and networks
• Silicon Slopes - empowers Utah’s tech community to learn, connect and serve
• University of Utah Technology and Venture Commercialization - helps business owners access the best resources to build value and growth

Once you get your company established in one of these great cities, keep magicJack for BUSINESS in mind. No matter where you land, one of the first things you’ll need is a cost-effective yet reliable phone line for your small business – and we can make it happen. Give us a shout when you’re ready!