Entrepreneurs looking to launch in 2025 should set their sights on Florida and Texas. A new WalletHub study ranks Orlando, FL as the best large city to start a business, followed closely by Tampa, FL and Austin, TX.
Top Cities for Startups in 2025
The analysis compared 100 of the largest U.S. cities using 19 key metrics across three main categories: business environment, access to resources, and business costs. Data sources included the U.S. Census Bureau, Bureau of Labor Statistics, and the Kauffman Foundation.
Here are the top 10 large cities to start a business in 2025:
- Orlando, FL
- Tampa, FL
- Austin, TX
- Jacksonville, FL
- Miami, FL
- St. Petersburg, FL
- Boise, ID
- Atlanta, GA
- Raleigh, NC
- Hialeah, FL
Why Orlando Leads the List
Orlando scored the highest overall due to its booming startup scene and favorable economic conditions. It has:
- One of the fastest-growing small business populations
- High investor availability per capita
- Strong growth in the working-age population
These factors contribute to a vibrant entrepreneurial ecosystem that supports both tech startups and service-based ventures.
Florida Dominates the Rankings
Florida cities claim six of the top 10 spots. Tampa benefits from low corporate taxes and a high number of early-stage investors. Jacksonville and Miami also offer attractive conditions, including business-friendly tax structures and access to skilled labor.
Austin Offers Tech and Talent
Austin remains a hotspot for tech entrepreneurs. With the highest venture capital investment per capita and a large college-educated population, the city provides both funding and workforce opportunities. It also saw one of the fastest growth rates in small business formations.
Affordable Alternatives Rising in the Rankings
Outside of Florida and Texas, Boise, ID and Raleigh, NC stand out for their low business costs and growing economies. Boise tied for the highest small business growth nationally, while Raleigh ranks in the top 10 for access to talent.
Bottom Cities for New Businesses
At the other end of the spectrum, Washington, DC, San Jose, CA, and Honolulu, HI ranked as the worst large cities for starting a business in 2025. These cities suffer from high costs of living, expensive office space, and limited financing accessibility.
Methodology at a Glance
WalletHub’s ranking used 19 weighted metrics in three categories:
- Business Environment (50%): includes startup rates, job growth, and revenue trends
- Access to Resources (25%): measures financing availability, education, and labor force
- Business Costs (25%): includes office rent, labor costs, and taxes
The data was collected as of February 2025.
Conclusion
The 2025 rankings reveal a clear trend: cities with strong investor networks, lower business costs, and workforce growth offer the best environment for startups. Whether launching a tech firm or opening a local service, entrepreneurs have strong options in cities like Orlando, Tampa, and Austin.
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