Cities that Have Soared or Sunk as a Place to Start a Business

A look at the big and small cities that have shown the greatest rise or fall on Inc.'s list of the best cities in which to start a business, from 1993 to 2000.

By Mary Kwak | 
 

Big cities that blasted up the list

Since 1993 these large metro areas have shown the most improvement in their business climate.

City 1993-1994 rank 1999-2000 rank Change
Phoenix, AZ 26 1 +25
Dallas-Fort Worth, TX 29 6 +23
Memphis, TN-AR-MS 25 7 +18
Detroit, MI 46 32 +14
Kansas City, MO-KS 33 21 +12
Baltimore, MD 39 29 +10
Boston, MA 44 35 +9
San Antonio, TX 27 20 +7
Tampa-St. Petersburg, FL 34 27 +7
St. Louis, MO-IL 36 30 +6

Source: Cognetics Inc.

Phoenix
Rank in 1999-2000: 1
Change in rank since 1993-1994: +25
Big reason for rise: Rapid population growth

Phoenix is the country's second-fastest-growing large metro area, with a 34% increase in population from 1990 to 1999. Phoenix also enjoys an overall operating cost advantage of 7% to 13% over cities of comparable size, according to Rick Weddle, president and CEO of the Greater Phoenix Economic Council. And the region's high-tech roots are paying off. Large manufacturers have formed partnerships with local universities to create a more educated workforce, and refugees from companies like Intel have provided a ready source of employees for many start-ups, according to Tim Riester, president of Phoenix-based ad agency Riester-Robb. Plus, "you wake up every day, and it's beautiful," says Riester. --Mary Kwak

Big cities that plunged down the list

Since 1993 these large metro areas have shown the biggest decline in their business climate.

City 1993-1994 rank 1999-2000 rank Change
Greensboro-Winston-Salem, NC 12 40 -28
Seattle, WA 15 37 -22
Los Angeles, CA 17 34 -17
Portland, OR-Vancouver, WA 13 28 -15
Milwaukee-Racine-Sheboygan, WI 7 22 -15
Miami-Fort Lauderdale, FL 11 24 -13
Nashville, TN 5 16 -11
Cleveland-Akron, OH 30 39 -9
Bridgeport-Stamford-Norwalk, CT 37 44 -7
Rochester, NY 43 49 -6

Source: Cognetics Inc.

Greensboro-Winston-Salem
Rank in 1999-2000: 40
Change in rank since 1993-1994: -28
Big reason for drop: Being overshadowed by boomtowns Raleigh-Durham and Charlotte, N.C.

What North Carolina's triad area -- Greensboro, Winston-Salem, and High Point -- seems to be missing is critical mass. Yes, the Triad has universities, venture capitalists, incubators, entrepreneurial networking groups, and other small-business support organizations. It just doesn't have as much as the neighboring Raleigh-Durham-Chapel Hill nexus has. "There is a sense of a brain drain from the 25- to 39-year-old demographic: people graduate from school, spend a couple of years here, decide it's a lousy place to find a mate, and move to Charlotte and Raleigh," says Michael Dougherty, president of Kindermusik International, which teaches music and movement to children. --Emily Barker

 1 | 2  NEXT 

Read more:

  • How Lincoln Became A Great Leader
  • How to Be Liked at Work (or Anywhere)
  • Cargo Firms Offering Free Shipping

    • Sign-up for our Leadership and Managing Newsletter