Best Cities To Start a Business in the U.S

Published: Monday, April 6, 2026 at 10:00 am

U.S. Cities See Surge in New Business Startups

The entrepreneurial spirit is thriving in the United States, with a record number of new business applications filed in 2023. This trend, which began during the COVID-19 pandemic, continues to accelerate. Factors such as the desire for independence, changing consumer preferences, and job displacement are driving this surge. Small businesses are a cornerstone of the U.S. economy, employing a significant portion of the workforce.

A recent analysis by SoFi examined the 50 largest U.S. cities with populations of 500,000 or less, ranking them on criteria such as business applications, office space costs, unemployment rates, and cost of living. The study revealed that certain cities are particularly advantageous for new businesses.

The South and Midwest regions are emerging as hotspots. Miami, Florida, leads the list, scoring high in new business applications and self-employment. Minneapolis, Minnesota, and Atlanta, Georgia, also rank highly. Texas is also poised to become a new-business powerhouse, with Plano and Irving making the top 10. Other cities in the top 10 include St. Louis, Missouri; St. Paul, Minnesota; Orlando, Florida; St. Petersburg, Florida; Madison, Wisconsin.

The analysis highlights the importance of location for new businesses. Aspiring entrepreneurs should consider factors like customer base, workforce availability, and operating costs when choosing a location. Local resources, incentives, and financing options should also be investigated.

BNN's Perspective: This report underscores the dynamism of the American economy. While the rise in entrepreneurship is encouraging, prospective business owners should carefully research their chosen location and leverage available resources to maximize their chances of success.

Keywords: business, startups, entrepreneurship, small business, economy, location, Miami, Minneapolis, Atlanta, Plano, Irving, St. Louis, St. Paul, Orlando, St. Petersburg, Madison, Florida, Minnesota, Georgia, Texas, Missouri, Wisconsin, new business applications, self-employment, cost of living, office space, unemployment rates.

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