In our volatile and sometimes uncertain economy opening a business, however small it is, may prove to be a daunting undertaking. Alternative financing organization Merchant Cash USA, along with marketing solution Cobia Systems, conducted research to find out in which U.S. cities the most small business growth occurred in 2015. This survey was conducted in hopes of helping future entrepreneurs decide on where to open up shop.
Merchant Cash USA was founded in 2015 with one goal in mind: to help small business owners secure financing that they otherwise might not be able to obtain through main street financial organizations, such as banks and credit unions. The Founder and CEO of Merchant Cash USA Alex Zukovski said this, “The growth of small businesses is vital to the American economy and the modern entrepreneur. The growth of small businesses across the U.S. means that the economy is on an upswing.” The organization’s mission is to offer small business owners cash advances without the hassle of big bank requirements.
Merchant Cash USA and Cobia Systems spoke with 5,347 small businesses through an online survey to see where small businesses and entrepreneurs were seeing growth in their industries. Survey participants were found through social media and email marketing, and were asked a variety of questions about their particular business and industry. Some of these included: how easy it is to get a business license in their state, how simple it is to navigate through particular government requirements of cities, and ranking if their sales were on an upswing. Organizations also had to fill out basic information such as the age of their business, number of employees, and if they had expanded in any way over the last year.
Typically, the organizations surveyed had 20 or fewer employees. Various external factors impacted which areas of the country were more small business friendly. Major east coast cities such as New York City, Boston, and Philadelphia were deemed less small business friendly because of the high cost of labor, rent, and supplies as well as stricter government regulations. Larger corporations were more prevalent in more expensive cities due to high costs.
The following is the list based on the results of the survey:
The Top Cities for Small Business
- Austin, TX
- Concord, NH
- Richmond, VA
- Denver, CO
- Charlotte, NC
- Boca Raton, FL
- Houston, TX
- Knoxville, TN
- Salt Lake City, UT
- Myrtle Beach, SC
Most cities on this list were impacted by a high population, are considered a tourist attraction, or employ the help of a larger city in a nearby vicinity that boosts sales.
Austin business owners, who took the top spot on the survey, seemed extremely happy owning a small business in Texas. This was noted in the comments section of the survey. Austin has long been recognized for its live music, plethora of hipsters, and dining scene, but now the city is being recognized for its growing number of small businesses. From the survey, it is evident that the Austin area is popular for tourists, sales rarely fluctuate downward throughout the year, and people seem eager to buy from local businesses, rather than large conglomerations. The culture of Austin is one of an artistic, creative crowd, and this may be another major factor in inspiring people to open their own unique businesses. For instance, the crafting industry in Austin has skyrocketed over the last five years.
Merchant Cash USA conducted the Top Cities for Small Business Growth survey to give entrepreneurs a head start in opening a business, because knowing is half the battle. To find out more please visit merchcash.com.
