If you are looking for a city to start your small business, you may have to check New York and L.A. off your list. According to a new report by WalletHub, the nation’s best cities to start a small business are not the ones you might think. Today, cities like Sioux Falls, South Dakota, Grand Rapids, Michigan and Oklahoma City are quickly becoming the go to places for new entrepreneurs to expand and grow their businesses.
The “2016’s Best Large Cities to Start a Business” report assessed the 150 most populated American cities using data from the Bureau of Labor Statistics, U.S. Census Bureau, and the National Venture Capital Association. It looked at three factors: the local business environment (length of the average workweek, industry variety, and revenue growth), costs (office space affordability, cost of living, labor costs, and corporate taxes), and access to resources (funding and the amount of venture capital investment made per capita).
Although venture capital still flows heavily through states like New York and California, the cost of living has skyrocketed, which has been a major deterrent to start-ups. Entrepreneurs are searching for cities that will give them economic incentives and freedoms to grow. Luke Pittaway, of the Center for Entrepreneurship, suggests that entrepreneurs search for vibrant startup cities that are creative and energetic. In addition, consider the type of industry you are in and what resources are available to make your business the most profitable. For example, if your company produces medical equipment, search for a city with a concentration of medical professionals, hospitals etc.
The following are the hottest cities for launching a business in 2016, according to WalletHub:
- Sioux Falls, South Dakota
- Grand Rapids, Michigan
- Oklahoma City
- Lincoln, Nebraska
- Louis
- Salt Lake City
- Charlotte, North Carolina
- Springfield, Missouri
- Tulsa
- Amarillo, Texas
If you are a startup searching for funding, First American Merchant gives funds to merchants – even ones without merchant accounts. That means you won’t even have to open a FAM merchant account to access the funds you need within a few days. To get an ACH Loan, a FAM associate will look at the gross monthly deposits in your checking accounts. The ACH loan will be determined by the amount of deposits and average monthly revenue of your business. Call a FAM representative to begin your ACH loan today.