The bizjournals network of local business newspapers recently published a study of the best cities for small businesses. They overlap closely with cities high on the Creativity Index in “Rise of the Creative Class.” Raleigh, Seattle, Austin, and Denver make both lists (Portland is #11, squeezed out by our smaller namesake Portland, Maine.) I suspect an updated creative list might show more overlap in places like Boise or Charlotte.
The highest scores in Bizjournals’ study went to areas that have prosperous economies, are expanding rapidly, and are densely packed with small businesses. (Bizjournals defines a small business as any private-sector employer with 99 or fewer employees.) Seattle ranks third in the overall standings, putting it just behind Raleigh and Charlotte in terms of small-business vitality. Austin and Boise, Idaho, round out the national top five.
The South and West offer a definite advantage for entrepreneurs, accounting for all but one of the 10 metros with the best small-business scores. The South is home to five of the leading markets, the West to four. The sole exception in the top 10 comes from the East – Portland, Maine, which ranks 10th. The highest-rated Midwestern market is Des Moines, Iowa, in 22nd place.
The bottom five? Perennial losers Detroit; Toledo, Ohio; Modesto, California; Dayton, Ohio; and Rochester, NY.
Your thoughts?