Considering starting a high-growth startup? If you want to do this, you’ll have to play by a new set of rules. In the United States, nearly every company is a start-up. 99.9% of the nation’s firms are start-ups, according to data from the US Small Business Administration (SBA) for 2018. (businesses with 500 or fewer employees).
Volusion, a software firm, studied the 2017 US Census Bureau Annual Survey of Entrepreneurs to determine which cities were the greatest areas to start a business (ASE). They considered aspects such as the proportion of startup workers, startup density, and the cost of living, among others, while making their decision.
Some Tidbits on the best cities to start Entrepreneurship journey
Large corporations including Amazon, Starbucks, and Microsoft have their headquarters in Seattle-Tacoma-Bellevue, Washington, the state’s most populous metropolis. Despite the presence of such well-known corporations, Seattle remains a sanctuary for fledgling businesses. Venture capital investment is substantially more common among Seattle companies than in any other location, making their prospects of survival and growth far greater.
When looking for places where you can start a business, instead of concentrating on labor costs and overall business development, you should look for cities that offer access to angel and venture capital investment, business incubators and accelerators, and a supportive startup atmosphere.
There’s no guarantee your company will succeed anywhere else, but if you’re looking for the ideal area to set up shop, these cities have a proven track record of being welcoming to new businesses.
Compass’s Global Startup Ecosystem Report for 2015 was used to decide which cities cut. Listed below are several resources to assist you in learning more about each city on the list and discovering what it has to offer new businesses.
Silicon Valley, California, USA
Silicon Valley, California’s main center for startup and entrepreneurial innovation, takes the top spot (which should come as no surprise to anybody).
It’s no surprise that #1 city on this list isn’t even a genuine “city,” but rather a region that encompasses many Bay Area communities.
Silicon Valley is the “startup capital” of the world because of the existence of world-renowned tech businesses like Google, Apple, Intuit, and many more, as well as a well-developed startup culture and an abundance of investors.
For the six parameters Compass used to evaluate each city’s success (financial performance; funding; market reach; talent; startup experience; and quickest growth), the Silicon Valley area came out on top in all six categories.
You don’t need to be convinced that Silicon Valley is the best place in the world to start a company because there are several television series dedicated to the subject.
New York City, New York, USA
New York City, which had been ranked fifth in 2012, now occupies the number-two slot. According to Compass’s research, New York City scored first in market reach and second in performance and funding.
According to a PricewaterhouseCoopers survey on the world’s most successful cities, it is also one of the top cities in terms of entrepreneurial climate, research universities, and “economic clout.”
New York City is also home to “Silicon Alley,” a term derived from the area that claims the top place. Accordingly, it’s a good analogy for this tech powerhouse. In addition, new companies or those moving to New York City can start up tax-free for ten years if they satisfy specific standards.
Berlin, Germany
Berlin climbed the rankings, rising from 15th place in 2012 to 9th place in 2015. Indicative of Berlin’s recent startup boom, this rise to the top 10 demonstrates the city’s recent rise to prominence as a startup center.
There are many creative firms in Berlin, a city where fashion and photography start-ups mix with the necessary IT start-ups. In addition, Berlin received more venture capital financing in 2015 than London, a clear indication that the startup environment in the city is thriving.
Boston, Massachusetts, United States.
Boston is now ranked number four, but Compass predicts that it will rise in the future years. “Clear emphasis on next-generation tech businesses,” “excellent quality of life scores,” and “a favorable regulatory environment for startup communities” were all factors in a 2016 assessment by the U.S. Chamber of Commerce Foundation that placed Boston top among U.S. startup centers.
Even though Boston’s ranking in the top 10 is up for debate, it appears that the city is a terrific environment for new companies. It’s a big assertion, but Boston Mayor Marty Walsh has even predicted that the city will become the IT center of the globe.
Los Angeles, United States of America
Los Angeles, California, is ranked third on the list. Despite not being as well-known as the Silicon Valley area, Los Angeles comes in second place in terms of market reach and fourth in terms of performance and financing to New York City.
According to some, Los Angeles has been dubbed the next big startup market, which isn’t unexpected considering the area’s long-standing reputation as a powerhouse for content development.
Bengaluru, Karnataka, India
Known as India’s “Silicon Valley,” Bengaluru is the top city for startups. In terms of commerce and digitization, it is often regarded as the best city in the world. Infosys, Wipro, Mphasis, and many more of the country’s major IT businesses are based here. Several firms have sprung out of it, including Flipkart, Ola, InMobi, and Quikr.
The Israeli city of Tel Aviv
Tel Aviv comes in third for talent availability and fifth for finance, making it the fifth-best city overall. For emerging entrepreneurs, Israel is a great location to be because of the country’s reputation as the “startup nation,” which has seen an increase in startup activity in recent years.
The fact that Israel receives more venture capital per person than any other country in the world may be enough to persuade potential entrepreneurs to pay a visit to Tel Aviv’s incubators and accelerators.
London, England, United Kingdom
London, England, comes in at number six, with the third-largest market reach and the fourth-fastest growth.
According to PricewaterhouseCooper’s list of the world’s most successful cities, London was placed second in the world for attracting foreign investment that creates jobs.
Technology businesses in London are flourishing, and a strong financial presence makes London an appealing site for fintech startups. However, London’s tech industry is still in its infancy, which may be both a positive and a negative depending on how you look at it.
Chicago, Illinois, United States
Chicago is the second-fastest-growing city on the Inc. list, behind only New York City, while being ranked sixth overall by Compass.
As of 2012, Chicago has risen from tenth place to seventh place in the rankings. According to PricewaterhouseCooper’s analysis of successful cities, Chicago also came in second for the amount of entrepreneurship.
As a city with a big VC presence, a varied startup economy that includes everything from healthcare to education, Chicago has been referred to as “one of the hottest tech startup environments.”
Seattle , Washington DC ,USA
In terms of startup experience and accessible talent, Seattle came in third place on Compass’ list of the top eight cities. Seattle’s venture capital is now the weakest in the country, however, this is expected to change in the future years, since Seattle’s venture capital is increasing 40% faster than the national average.
The tech sector of Seattle’s startup economy is now the most vibrant, thanks to the presence of Microsoft and Amazon in the city.
Singapore
Singapore is now the only location outside of the United States and Europe to boast a top-ten startup scene, moving up from number 17 to number 10.
Growing backing from the government and an open and varied startup ecosystem are all factors in Singapore’s success as a start-up hotbed. In reality, Singapore’s startup atmosphere is unique due to the multiple government programs put in place in recent years to encourage the industry.
The startup community in Singapore, although being referred to as the “Silicon Valley of Asia,” is still in its infancy and will take some time to establish itself as a powerful startup hub, according to industry experts. As a result, Singapore should be on your shortlist if you want to establish your company in the heart of a rapidly expanding ecosystem.
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