SAN DIEGO.- Forbes has compiled a list of the best cities in America for opening a startup, or small business, by taking data from millions of small business from around the country and analyzing what has made them successful, concluding that the California city was currently the best for entrepreneurs to start their projects and raise small businesses.
Tom Post, writing for the magazine, used information from more than 27 million small business, gathered by Radius.com—a company that collects small business data in the U.S. and offers the information to others for marketing — and found that entrepreneurs basically attract other small business owners and startupss, creating a feedback loop of sorts that is aided when cities strengthen a community oriented business environment and facilitate the development of more communities.
San Diego managed to come on top because of its "heavy concentration in projected high growth industries, as well as a high likelihood of accepting credit cards and adopting social media. San Diego is home to the fifth-best rated business community in the country."
They ranked the 50 most populated cities in the United States, based on five criteria that, according to them, nurture community engagement and resources for small businesses:
- Small businesses as a percentage of total businesses: If they already have a large number of small businesses, startups will have less obstacles to set up.
- Percentage of small businesses that accept credit cards:Small businesses manage to get access to much more capital if they start accepting credit cards.
- Percentage of small businesses in high growth industries; there are certain industries, like mining, information technologies, agriculture, HR services, specialized machine repair, and others, that are projected to be the industries with the most growth in the future, and so, cities with small businesses that are part of those industries, whether they supply or are part of the industry, tend to be more successful in attracting other startups too.
- Percentage of small businesses with Facebook pages and websites: Believe it or not, having an online presence usually meant success for small businesses. "Web presence indicates adaptability and likelihood to innovate—creating a network effect for communities dedicated to growth and positive change.", says Forbes.
- Percentage of businesses with online reviews: Also, Forbes found that a relation between companies having good online reviews and a general acceptance by locals towards small businesses.
The complete list of cities is:
1. San Diego
3. Austin, TX
5. Portland, OR
6. San Francisco
7. Dallas, TX
9. New York City
11. Las Vegas
12. San Jose, CA