We all know the failure rate of startups, roughly 90 percent over five years. And we know Silicon Valley might still be the top place in the United States for founding technological enterprises. Perhaps it's because venture capitalists expect that the companies they back be based in or relocate to Silicon Valley. However, when you explore the type of business you want to establish, you should consider the importance of a number of elements other than money that could affect your startup's success. Even in the age of remote work, the location of your startup may be more important than you realize.
Outside of Silicon Valley, other startup ecosystems have been quietly growing for more than two decades. You should also look at the regional entrepreneurship ecosystem for significant resources in addition to the actual city.
Entrepreneurs. Nothing beats success when it comes to promoting success. You need a large number of successful and aspiring entrepreneurs for an ecosystem to develop. They form support groups, clubs, and meetups, as well as offer guidance and mentoring to aspiring entrepreneurs.
Talent. If you're starting a biotech company, you should be in San Diego, which is home to one of the country's most thriving biotech clusters. Why? Because your capacity to hire top personnel is significantly improved. So, when you think about your startup and what it needs at its core, does that talent exist in the location or region you've chosen?
Education. Your possible top talent may be emerging out of the local institutions in this age of quickly accelerating firms centered on competitiveness. Choose an ecosystem that produces a diversified talent pool that is vital to the success of your business. Recruit some of this talent as paid interns with the intention of hiring them as future employees.
Investors. Every entrepreneurial ecosystem requires investors. Examine a potential region and look at the numbers, such as capital invested, diversity of investments, and overall growth trendline. Consider the type of investor who may be specializing in an area where your startup is heading.
Costs. This is a metric that few founders consider, but it could be critical to the long-term success of your startup. If you are raising capital, you may require a burn rate or runway to achieve your overall goals. While you may prefer to be in Silicon Valley, all of the necessary ecosystem resources may be found in Salt Lake City, where the cost of living is lower and the potential burn rate is much longer.
While there are several towns and places in the United States that are fast increasing entrepreneurship, the list below includes the perennial leader, Silicon Valley, as well as another region that has profited from firms such as Microsoft and Amazon, Seattle. The rest of the list has quietly spent the previous 10-15 years steadily developing its entrepreneur base and location. Today, the bottom three are among of the finest areas to start a business for various reasons.