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Where You Live Can Determine The Success of Your Business

Posted on 10 April, 2013

While many of us associate startup culture with tech hubs like Silicon Valley and Manhattan, in fact, when it comes to starting a business, many cities treat small businesses better as a whole than these hot spots. Whether it comes down to tax advantages, professional licensing requirements, or the ease of obtaining health insurance, the regions that encourage small businesses to thrive might come as a surprise.

A recent report by and the Kauffman Foundation surveyed small business owners across the country to determine who was in the best situation and happiest with the rules and regulations of their city. Although entrepreneurs and small business owners in different industries expressed some degree of variation in their priorities, there was a fair amount of agreement about what a city could do to make the set-up process easier.

The researchers found that the five friendliest cities for small businesses are:

Austin, TX
Colorado Springs, CO
Houston, TX
San Antonio, TX
Virginia Beach, VA

It’s interesting that three out of five of these small business hubs are located in Texas, but it just goes to show that the state is invested in the spirit of entrepreneurship and professional opportunities for individuals.

In contrast, the five cities considered least friendly towards small business are:

Los Angeles, CA
Sacramento, CA
San Diego, CA
Cincinnati, OH
Newark, NJ

It’s interesting that Texas seems to be favorable towards small business establishment and growth while California makes things difficult for the budding entrepreneur.

See how your city stacks up!

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