Colo. Among 2018's 'Best Place To Start A Business:' Study

DENVER, CO -- A study of 2018’s best -- and worst -- places in the United States to start a small business has the Denver-Aurora-Lakewood at No. 1. The site RewardExpert compared 177 metropolitan areas with more than 250,000 residents, using 30 data points in nine categories. The idea was to find the most business-friendly environment to start a small business or tech startup.

Researchers analyzed the following characteristics by census area to determine the best spots in the U.S.:

• office space
• demographics and diversity
• education
• income and assets
• transit and commutes
• housing costs
• retail
• taxes and business incentives
• venture capital activity
• startups and small businesses

No. 1: Denver-Aurora-Lakewood, Colorado was selected as one of the fastest-growing metropolitan areas which has attracted $670 million in venture capital investment between 2010-2016. The study also commented that office space in Denver is "inexpensive and plentiful, with an average rent of $13.74 per square foot, and 12.5 percent of all available office spaces are vacant and available."

No. 2: Boston-Cambridge-Newton, Massachusetts came in second in the country with a a startup survival rate of 53.97 percent. "You are more likely to succeed here than in 98.8 percent of other metro areas," the study said.

Fort Collins, Colorado came in No. 9, praised for a low corporate tax rate and a job-creation tax credit. "Business ownership in the Fort Collins metropolitan area is extraordinarily high, in the 98th percentile, and a healthy startup growth rate in the 79th percentile," the study said.

The other locations in the top five included:

No 3. Bridgeport-Stamford-Norwalk, Connecticut

No. 4 Minneapolis-St. Paul-Bloomington, Minnesota

No. 5 Madison, Wisconsin

The worst two locations for starting a new business are:

• Charleston-North Charleston, SC – "The area business ownership rate is in the 8th percentile, with a very low percentage of startups (0.89 percent), and a below average five-year survival rate of 48.32 percent."

· Florida Panhandle Region (Tallahassee-Pensacola, FL) – "The Florida Panhandle region is the second least-favorable location for small businesses — and the absolute least favorable one for startups, which make up only 0.86 percent of all businesses," the study said.

Read the study and methodology here.

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