After a recent article noting the chronic difficulty in New York City to run a business, albeit regulations, taxes, rents, etc., you might guess that Manhattan will not be on our list of the best places to run a small business.
Four of the top 15 cities to start a business in are located in Florida, and to no one’s surprise, the worst are in California. National Small Business Week is just around the corner, which this year falls on May 5th through 11th, to recognize the contributions of American entrepreneurs and small business owners.
As most know, more than 50 percent of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year, according to the U.S. Small Business Administration (SBA). The latest release by WalletHub in its 2019 Best and Worst Small Cities to Start a Business, the top 15 are as follows.
One wonders whether entrepreneurs are rushing off to places like Cheyenne, WY or Aberdeen, SD. Having never been to either, it’s hard to say. “A city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences,” says Adam McCann, WalletHub financial writer. “Every small city offers unique advantages and disadvantages to new business owners.”
The state of Florida was represented by 4 cities in the top 15; Fort Myers (3), Dania Beach (11), Boca Raton (14) and Deerfield Beach (15). This is a stark contrast from the West Coast. The least friendly cities to start a business are in California, according to WalletHub. These cities topped the rankings of least affordable access to financing, least educated workforce, most expensive office spaces, lowest average revenue per business, and fewest startups per capita.
The WalletHub survey also mentions a point that you won’t hear on CBS news tonight. The fact that the Trump tax relief is going straight to the bottom line of small businesses. Twenty-three percent said their businesses will direct savings from the federal Tax Cuts and Jobs Act toward executive and investor bonuses, while 12 percent said the savings will go toward employee compensation.
Federal legislation and government contracts allow small businesses to be remoras to those big businesses who need to diversify for any number of means. Whether it be to get an energy contract or pursue a green initiative, large businesses are bending over backward to small businesses in smaller cities.
Sherif A. Ebrahim, Ph.D., professor and director of entrepreneurship and innovation education at Tulane University, said, “The small business tax benefits seem to have stimulated spending by small and midsize companies, and diversity percentage requirements by larger institutions have opened the door to small business operators to be involved.”
During National Small Business Week, don’t hesitate to step out of your comfort zone, and interact with fellow business people locally and regionally. In addition, the SBA will have virtual conferences to help business owners meet each other and hackathons to solve business problems and more.