When you think of startups, New York City, Silicon Valley and San Francisco probably come to mind as great locations. But where do these two tech meccas rank on a list of the "best cities" for startups? Not even in the top five.
That's according to Radius, which analyzes small business information and helps startups grow. The firm compared the largest 50 metro areas in the U.S. based on several factors, including high small business concentration, small businesses that accept credit cards, engagement in high growth sectors and business social media interaction.
The company defined the fastest-growing industries as beverage manufacturing, machinery manufacturing, computer systems design, real estate, mining, oilseed and grain farming. These industries were among those rated as high growth by the analysis firm Sageworks.
“Some industries, such as computer systems design, have been consistent performers for the last couple of years, but others, such as real-estate related industries, can be more cyclical,” said Sageworks analyst Mike Lubansky. “It is probably preferable as a business where possible to hitch your wagon to an industry that is thriving based on structural rather than cyclical changes.”
Number one on the list... San Diego. Radius noted that the city has a high concentration of businesses in high-growth fields, as well as high business activity. Denver, Austin, Seattle and Portland, Oregon, finished out the top five.
San Francisco came in at number six in the Radius rankings, followed by Dallas, Boston, New York, Chicago, Las Vegas and San Jose.