Phoenix Soars to 14th Place as a Top City for Young Entrepreneurs

By Matthew Holloway |

A new study conducted by Search Logistics highlights the Phoenix metro area as the 14th best city in the nation for young entrepreneurs. This analysis assessed the 50 most populous U.S. cities based on various factors, including co-working costs, wages, internet infrastructure, taxation, living expenses, and personal income.

The study ranked these factors, assigning a score out of 100 to each before calculating an overall index score. Phoenix’s placement in the rankings underscores a broader trend observed in cities governed by conservative policies that foster a business-friendly environment. Florida’s Jacksonville secured the top spot, followed closely by Tampa, while several Texas cities also ranked highly.

Jacksonville topped the list with an impressive index score of 70.91, excelling particularly in cost of living with a score of 92.82. Tampa came in second with an index score of 70.35, boasting the highest internet speeds measured in the study at 180.5 Mbps, which garnered a perfect score of 100 in that category.

Indianapolis ranked third with an index score of 69.10, notable for its low cost of living, earning a score of 95.98. Baltimore followed in fourth place with 67.08, achieving a perfect score in cost of living as well. Fort Worth rounded out the top five with an index score of 65.15, benefiting from the lowest minimum wage of $7.25, which contributed to its high ranking.

The remainder of the top ten includes Houston, Philadelphia, San Antonio, Raleigh, and Charlotte. In contrast, traditionally tech-centric regions such as New York, Los Angeles, and San Francisco did not fare well in this ranking. Matthew Woodward from Search Logistics cautioned young entrepreneurs against venturing into these high-cost cities. He emphasized that relocating to states like Florida or Texas might offer significant advantages, especially for those in the early stages of their businesses.

Notably, Mesa, AZ did not make the list due to insufficient co-working space availability, a status shared with several cities in California and Texas. Woodward stated, “This ranking can be helpful for emerging entrepreneurs contemplating where to establish their businesses. The decision-making process can be overwhelming, but certain cities provide a more supportive environment for startups.”

Southern cities, particularly in Florida, North Carolina, and Texas, often emerge as the most favorable locations, largely due to their lower costs of living.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.