Where you start your business matters more than most founders realize.
The right city gives you access to talent, customers, funding, and mentorship. The wrong city means higher costs, fewer connections, and an uphill battle for resources. While remote work has made location more flexible, the local ecosystem around you still shapes your odds of success.
We analyzed cities across the U.S. based on cost of living, startup activity, access to capital, talent pools, and available resources for entrepreneurs. Here are the ten best cities to start a business in 2026 — including a few that might surprise you.
Austin, TX
Austin has earned its reputation as one of America's top startup cities. The combination of no state income tax, a thriving tech scene, and a culture that celebrates entrepreneurship makes it a magnet for founders.
Major tech companies like Tesla, Oracle, and Apple have expanded their Austin presence, creating a deep talent pool and robust investor network. The city's startup ecosystem spans enterprise software, consumer tech, and increasingly, climate and energy tech.
Cost of living has risen significantly over the past decade, but Austin remains more affordable than Silicon Valley or New York. The University of Texas provides a steady pipeline of young talent, and organizations like Capital Factory anchor a strong mentor and accelerator network.
Find coworking spaces, grants, and accelerators in Austin.
Miami, FL
Miami has transformed from a vacation destination into a serious tech hub. The pandemic accelerated an influx of founders and investors fleeing high-tax states, and the momentum has continued.
Florida's lack of state income tax is a major draw. Miami also offers access to Latin American markets — a unique advantage for startups targeting international expansion. The city has attracted significant venture capital, and events like Miami Tech Week have cemented its status in the startup world.
Industries thriving here include fintech, crypto, real estate tech, and consumer brands. The lifestyle doesn't hurt either — you can take meetings on the beach.
Explore business resources in Miami.
Denver, CO
Denver combines outdoor lifestyle with a growing tech economy. The city has become a hub for aerospace, healthtech, and outdoor industry startups, drawing talent who want mountains and career opportunities.
Colorado offers a favorable business climate with relatively moderate taxes and strong state support for small businesses. The University of Colorado system and proximity to federal research labs in Boulder create opportunities in deep tech and life sciences.
Cost of living is higher than a decade ago but still reasonable compared to coastal cities. The startup community is collaborative rather than cutthroat — founders genuinely help each other here.
Browse Denver's startup resources.
Raleigh, NC
Raleigh is one of the most underrated startup cities in America. The Research Triangle — Raleigh, Durham, and Chapel Hill — is home to three major research universities and one of the highest concentrations of PhDs in the country.
This translates into exceptional talent for biotech, life sciences, software, and hardware startups. North Carolina's cost of living remains significantly lower than coastal tech hubs, and the state actively courts businesses with incentives and infrastructure investments.
The downside? The ecosystem is smaller than Austin or Miami, so certain specialized talent or investors may require looking beyond the region. But for the right business, Raleigh offers tremendous value.
Find resources for entrepreneurs in Raleigh.
Nashville, TN
Nashville's economy has diversified well beyond country music. The city is now a major healthcare hub — home to HCA and dozens of health-focused startups — while maintaining strengths in entertainment, hospitality, and increasingly, fintech.
Tennessee has no state income tax, and Nashville's cost of living, while rising, remains below peer cities. The city's culture is business-friendly and relationship-driven — people make time for coffee and introductions.
The startup ecosystem is smaller than Austin's but growing rapidly. If you're building in healthcare, music tech, or hospitality, Nashville should be on your shortlist.
Discover Nashville's business resources.
Boise, ID
Boise is the dark horse on this list. Idaho's capital has quietly become one of the best places to start a business if you want lower costs, less competition, and a high quality of life.
Cost of living is significantly below national averages, and Idaho has no franchise tax. The tech scene is small but growing, with particular strength in software, manufacturing, and outdoor industry businesses.
The trade-off is a smaller talent pool and less venture capital. But for bootstrapped businesses, lifestyle entrepreneurs, or founders who can hire remotely, Boise offers an exceptional value proposition.
Check out Boise's entrepreneur resources.
New York, NY
New York remains the undisputed capital for finance, media, fashion, and advertising. If your business operates in these industries, there's no substitute for being where the action is.
Yes, it's expensive. Yes, it's competitive. But New York also has unmatched density of talent, customers, and capital. The city's startup scene extends well beyond Manhattan — Brooklyn has become a hub for consumer brands, food and beverage startups, and creative businesses.
For founders who thrive on energy and access, New York delivers. Just make sure your business model can support the costs.
Explore New York's vast business ecosystem.
Atlanta, GA
Atlanta is a powerhouse for Black entrepreneurs and a hub for logistics, fintech, and film production. The city offers big-city resources with more reasonable costs than coastal markets.
Georgia Tech and Emory provide strong talent pipelines, and the city's central location and major airport make it easy to do business nationally. Atlanta has produced notable startups across sectors, from Mailchimp to Calendly.
The state offers various incentives for small businesses, and organizations like Atlanta Tech Village have built a supportive startup community. If you're building a business that serves diverse markets, Atlanta is an excellent base.
Find grants, accelerators, and coworking in Atlanta.
Salt Lake City, UT
Salt Lake City has quietly built one of America's strongest startup ecosystems. The region — sometimes called "Silicon Slopes" — has produced major successes like Qualtrics, Pluralsight, and Domo.
Utah's business-friendly policies, relatively low taxes, and high quality of life attract both founders and talent. The outdoor recreation is world-class, and the cost of living remains below coastal cities.
The tech scene skews toward enterprise software and SaaS, with a culture that balances ambition with work-life boundaries. Brigham Young University and the University of Utah provide steady talent.
Browse Salt Lake City's business resources.
Chicago, IL
Chicago is the Midwest's business capital and an underappreciated startup city. The third-largest U.S. metro offers access to major corporate headquarters, strong universities, and a diverse economy spanning finance, manufacturing, healthcare, and food.
Illinois taxes are higher than Sun Belt states, but Chicago compensates with lower costs than New York or San Francisco and access to Midwestern work ethic. The startup community has matured significantly, with active angel networks and venture funds.
For B2B startups selling to enterprises, Chicago's density of Fortune 500 headquarters is a real advantage. You can land meetings that would take months to schedule from other cities.
Discover Chicago's entrepreneurship resources.
How to Find Resources in Your City
Every city on this list — and hundreds more — has grants, accelerators, coworking spaces, and mentorship programs waiting for entrepreneurs who know where to look.
We built SparkLocal to help you find them. Our resource directory covers over 2,400 resources across 309 cities, organized by category and searchable by location. Whether you need a coworking space, a small business grant, or a mentor through your local SBDC, we've mapped it out.
Don't leave money and support on the table. Explore the resources in your city.
Found Your City? Build Your Plan
Choosing where to start is step one. Building a business that thrives there is the real work.
SparkLocal helps you turn your idea into an actionable launch plan — with market research for your specific city, financial projections, and a step-by-step checklist to get from idea to launch.
Try the free business builder and see what your business could look like.
The right city gives you an edge. The right plan helps you use it.