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?
February 18th, 2009 at 8:47 pm
Probably about right. Ohio is in desperate straits and as we’ve discussed on here, Detroit is a shambles. No offense, but I fail to see what’s so awesome about Portland, Maine.
Check this out though for proposed high speed rail lines!: http://www.huffingtonpost.com/2009/02/18/map-of-potential-high-spe_n_167804.html
February 18th, 2009 at 9:50 pm
I’ve only been to Portland, Maine once and it was last millennium. It seemed a nice enough picturesque mid-sized town. Not growing real fast according to the chart, but lots of small businesses. Sm2, are you there can you comment on this?
And thanks for the map. Glad to see the Portland (actually Eugene) to Vancouver route there. That would certainly boost Ecotopia! Notice that the rumored LA-Vegas line is missing, let the casinos pay for it.
February 19th, 2009 at 7:29 am
Portland, Maine is a great city! The city has revitalized the Old Port district, so it is vibrant, but has maintained the authenticity of its working waterfront. The young people from the rest of Maine move to Portland for school and/or work opportunities. Many people have moved from the Boston metro areas because of the relatively cheaper housing costs, close proximity to Boston (people take the Downeaster train to Boston for work/entertainment access). Lots of creative class people have moved there over the last decade- from NY and other metro areas. I remember reading a study that said many GLBT’s moved there in the last decade. I suspect the relative lack of demographic growth is a result of increased housing costs in the past five to 10 years. Many people who lived there wanted to buy homes, but couldn’t afford to, so they moved a little north (charming and growing towns with relatively easy access to Portland for work and play, but much less expensive homes)- this movement offset those coming from the Boston area in search of lower housing costs and better quality of life when they started having kids. Also, lots of retirees (the timeless ones who wanted access to outdoor recreation, but also proximity to a vibrant street-level culture) moved to Portland, despite Maine’s unbalanced tax system.
As far as the small business dynamic goes, I think the size of the city plays a part in this ranking, along with the culture and demographics. Portland is a very easy city to plug and play, I think because of its size. The small business culture is pretty tight knit- they can organize themselves easily. There is also a culture of “buy local”- to the point where there was at one time a movement to not allow chain stores in the downtown area. At the community level, neighborhoods are organized.
When I left, the Bayside community was working on their vision plan. The community was a gateway to the town, and the last “undeveloped” part of the city. This was such a diverse community- older people who have stayed (despite all of the changes), young people who wanted to stem the tide of rampant sprawl development, and lots of immigrants (many Somalians, Asians- all very entrepreneurial). It was a pleasure to work with people so committed to their community and supportive of the local entrepreneurial efforts.
I witnessed on innumerable occasions a tendency for the more mature businesses (often people “from away”) who had moved in (with all of their capital and contacts)and provided precious support to younger business owners. This could be in the form of fiscal/capital investment or by subcontracting and mentoring.
Like many states, Maine does not focus on entrepreneurial development and prefers to incentivize recruited companies, so I believe the culture is what supports/creates the small business density. It’s all about networks, right? I’m kind of wondering what the churn rate is for the region….
February 19th, 2009 at 11:52 am
I went back and checked the map. It includes a Boston- Portland line. That would help the economy and commuters. Then the Boston-Montreal line goes through both New Hampshire and Vermont, creating opportunity for all of New England
(although I’m not sure they all want to give up their splendid rural isolation.)
Along with the lines to NYC and Buffalo (Toronto), if it happens high speed rail will solidify Boston as a creative crossroads.
February 19th, 2009 at 12:47 pm
I think the more pragmatic rural citizens will welcome any bit of connection with anyone wanting to work with them. I know some of the Maine counties closest to the Canadian border are beginning to explore ways to work together. That splendid rural isolation has come at a high cost, and I’m certain they will welcome any opportunity at all. That said, I’m not certain the counties in the greatest need for opportunity have the community/regional/political capacity to work toward the right kind of opportunity.
February 20th, 2009 at 12:09 pm
Is it me, or do the South and West (excluding California) have exceptionally low taxes? How many of the top 10 don’t have income or sales taxes?