Twin Cities Ranked Poorly Among Metros For Startups
A recently released list ranked the largest 150 cities for entrepreneurs looking to start a business, and neither Minneapolis nor St. Paul cracked the top 100.
Personal finance social network WalletHub ranked the country’s most populous cities on their relative business start-up opportunities.
Minneapolis ranked 118th and St. Paul was near the bottom at 136th. Nearly all of the highest-ranking cities were in the south.
Jacksonville, Florida topped the list, followed by Fayetteville, North Carolina; Augusta, Georgia; Jackson, Mississippi; and Memphis, Tennessee.
The worst-ranked city on the list was Newark, New Jersey, followed by Providence, Rhode Island and then Glendale, Garden Grove, and Santa Ana—all in California.
The study took into account 14 different metrics in compiling its list. The following eight were more heavily weighted than the others: access to financing, cost of office space, corporate taxes, employee availability, local cost of living, average annual salary, length of average workday, and workforce education level.
Six other metrics were less weighted in determining the list. The first was entrepreneurial activity. The study asserts that cities that already have a high number of start-ups per capita are likely to have the conditions and policies that are conducive to more start-ups.
The other five metrics included the five-year survival rate of new businesses, the number of businesses per capita, real estate affordability, the variety of different industries, and lastly a “Small Business Friendliness Index,” which took into account third-party research already completed on the subject.
Recently, there has been some debate over some of the types of metrics used for lists ranking entrepreneurial activity like this, read more here.
There are also a number of signs that suggest Minnesota is a major player in entrepreneurship. For example, the state is a national leader in terms of patents, and the annual Minnesota Cup competition attracts thousands of entries.