News Summary
In WalletHub’s 2025 rankings, Orlando, Florida has been recognized as the top U.S. city for launching new businesses, with Tampa and Austin following closely behind. The study evaluated 100 cities based on factors critical to small business success, including costs, environment, and access to resources. With a high small business growth rate and an influx of investors, Orlando emerges as a prime location for startups. The study highlights the importance of the first year of operation and Orlando’s favorable survival rate, reinforcing its appeal for entrepreneurs.
Florida has been identified as the premier state for launching new businesses, with Orlando topping WalletHub’s 2025 rankings for the best U.S. cities to start a business. The study analyzed 100 U.S. cities focusing on aspects crucial for small business success, such as business costs, environment, and access to necessary resources.
WalletHub’s findings reveal that Orlando boasts a high rate of small business growth and a significant number of investors per capita, which greatly assists startups in acquiring the funding they need. Additionally, the city benefits from a growing working-age population, providing a robust talent pool that is essential for the success of new ventures. A key point highlighted by analysts is that the first year of operation is critical for startups, with data indicating that one in every five new businesses fails during this period. However, Orlando’s positioning as a favorable location is reinforced by its high survival rate for startups, according to the Kauffman Early-Stage Entrepreneurship Index.
Following Orlando, Tampa, Florida, ranks second in the study, attributed to its low corporate tax rates and a high concentration of investors. Tampa’s performance on the Entrepreneurial Activity Index signals a healthy startup ecosystem with a respectable survival rate. Austin, Texas, rounds out the top three cities, noted for its high venture capital investment per capita and a well-educated workforce. Employment growth in Austin also ranks the highest across the nation.
Top 10 Cities to Start a Business
According to WalletHub, the complete list of the top 10 cities for launching a business in 2025 includes:
- Orlando, Florida
- Tampa, Florida
- Austin, Texas
- Jacksonville, Florida
- Miami, Florida
- St. Petersburg, Florida
- Boise, Idaho
- Atlanta, Georgia
- Raleigh, North Carolina
- Hialeah, Florida
Interestingly, Birmingham, Alabama, is noted for its ranking at 36th overall. The city excels in business costs, ranking third in this specific category while scoring 82 in business environment and 33 in access to resources. This suggests that although Birmingham may not be in the top echelon for starting a business, its low business costs are a substantial advantage.
Methodology and Factors Considered
WalletHub’s methodology for this comprehensive study included various essential factors such as startup rates, average business revenue growth, access to financing, and labor costs. These indicators serve to inform prospective entrepreneurs about which cities may offer the most advantages when starting a business.
The favorable business landscape in Florida is further enhanced by the absence of a personal income tax and a competitively low corporate tax rate. These economic attributes, combined with the city’s reasonable living costs and a surge in new business applications, contribute significantly to Orlando’s top ranking.
As cities like Orlando emerge as attractive locations for new enterprise creation, potential entrepreneurs are encouraged to utilize these insights to gauge their options and make informed decisions about where to establish their businesses.
Deeper Dive: News & Info About This Topic
- Alabama News: Best Cities to Start a Business
- Inc: Best U.S. Cities to Start a Business in 2025
- Shopify: Best Cities to Start a Business
- Encyclopedia Britannica: Startup Business
- Google Search: Best Cities to Start a Business 2025
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
