When you are about to launch a startup there are many things and risks to consider and one of that is where to start your business.
Ted Zoller, Associate professor of Strategy and Entrepreneurship at the University of North Carolina, has outlined the best cities in the USA divided in three categories on the basis of their entrepreneurial ecosystem.
The infographic below, from Inc. Magazine, examines rents, taxes and other factors in eight cities to help evaluate and consider the best options.
In the graphic above you can see that the most expansive places for an office and an apartment are New York City and San Francisco, with an average price of $3,200 for a one bedroom apartment and $68 for a square foot office space. The cost of programmers and developers is also the highest in the States. State taxation is 6.7% in New York plus the city tax. In San Francisco is 9.3%
If you want to save money is better to choose cities as Miami, Las Vegas, Omaha and Detroit where cost of living and services are much less expensive. Miami, in particular has over 14,270 startups and 0% State tax.
Zoller has divided the cities in Organic and Mature, Entrepreneur Led, Nascent and Developing
Organic and Mature
These are the cities where the ecosystem is highly advanced. San Francisco and New York City cost of living and taxes are high but it’s also the best places where you can find talents and partners. Also the access to capital and resources it’s easier. The cost for your company will be higher but also the benefits.
Omaha, Denver and Las Vegas are well-connected startup communities with business opportunities and fewer battles for local resources such as funding and staff.
Nascent and Developing
Detroit, Nashville and Miami are nascent and developing cities in the startup ecosystem. If you want to save money and have room to expand these cities could be the right choice. The competition is lower and price for offices is cheap. Also taxes, as in Miami, are lower than elsewhere.
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