These are the top cities in the US for small businesses

SAN FRANCISCO (KCBS RADIO) – With small businesses accounting for 99.9% of American businesses, according to the U.S. Small Business Administration’s Office of Advocacy , much of the nation relies on them to survive.

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That’s why it’s important to know where they are thriving. CoworkingCafe recently released a list of the top 20 cities in the nation where small businesses have the best chance of success.

Economic pressure can stress the more than 33.1 million small businesses in the U.S. Earlier this month, legal and business services company Epiq released data that indicated the number of distressed small businesses electing to file for subchapter V of chapter 11 of the U.S. Bankruptcy Code increased 5% last month compared to August 2023.

Still, small businesses with under 500 employees are a strong driver of the economy. They employ around 61.7 million Americans – 46.4% of private sector employees. Out of all new jobs created between 1995 and 2021, small businesses accounted for nearly 63% of them.

They’re also the most trusted institutions in the country, according to the Pew Research Center . This April, the center reported that most U.S. adults (86%) said small businesses have a positive effect on the way things are going in the country, the most positive review for any institutions.

Last year, a record-breaking 5.5 million new business applications were filed across the country, according to CoworkingCafe. To create its list of the best places to start a small business, the outlet “analyzed 136 cities across various key metrics, including GDP, number of business applications, labor costs and more.”

Here’s the list:

1.       Scottsdale, Ariz.

2.       Miami, Fla.

3.       Atlanta, Ga.

4.       Orlando, Fla.

5.       Austin, Texas

6.       Tampa, Fla.

7.       Fort Lauderdale, Fla.

8.       Boise, Idaho

9.       McAllen, Texas

10.   Huntsville, Ala.

11.   Provo, Utah

12.   Allen, Texas

13.   Cape Coral, Fla.

14.   Wilmington, N.C.

15.   Denver, Colo.

16.   Nashville, Tenn.

17.   Oklahoma City, Okla.

18.   Jacksonville, Fla.

19.   Gilbert, Ariz.

20.   Salt Lake City, Utah

“When it comes to the best cities for small businesses, the South clearly stands out. With 14 out of the top 20 cities hailing from below the Mason-Dixon line, places like Miami, Orlando, and Austin are sizzling hot for startups,” said CoworkingCafe.

However, while several Florida cities made it on the top 20 list, Audacy also recently reported that people were leaving their jobs more than other states. On the other hand, Texas – another state with multiple cities on the list, had a decrease in job separations. Cities in the West, including Denver and Salt Lake City, have also been hot spots for small business success.

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