The 50 Best U.S. Cities for Starting a Business in 2020
What any business--and any city--can learn from the best places for startups in the U.S.
We have the key to the city--or 50 cities, to be exact. For the 2020 Surge Cities index, Inc. and innovation policy company Startup Genome analyzed troves of data on seven essential indicators--such as early-stage funding and job creation--to determine the 50 best areas for startup growth. In the following dispatches, you'll find a road map for turning forgotten ZIP codes into boomtowns--or simply for answering the age-old question: Where should you go next? From Charleston to Chattanooga, the answers may surprise you.

Surge Cities
The 50 Best U.S. Cities for Starting a Business in 2020
What any business--and any city--can learn from the best places for startups in the U.S.


We have the key to the city--or 50 cities, to be exact. For the 2020 Surge Cities index, Inc. and innovation policy company Startup Genome analyzed troves of data on seven essential indicators--such as early-stage funding and job creation--to determine the 50 best areas for startup growth. In the following dispatches, you'll find a road map for turning forgotten ZIP codes into boomtowns--or simply for answering the age-old question: Where should you go next? From Charleston to Chattanooga, the answers may surprise you.
Austin
Leading the nation in job creation and high-growth company density--and delish BBQ.
Salt Lake City
It’s tops for adventure seekers--both the outdoor and indoor variety.
Durham
Big tobacco cedes to big money in this emerging Southeast startup hub.
Denver
It’s like San Francisco and Palo Alto--but with cows.
Boise
You can buy four houses in Boise for the price of one in San Francisco.
San Francisco
Opportunity and optimism still reign in this world-famous startup hub.
Charleston
In this Southern hotspot, funding takes a back seat to founding.
San Diego
Come for brand names. Stay for the startup scene--and the beach.
Phoenix
Low costs and low regulations help this desert flower blossom.
Miami
Its A-list startup scene just keeps heating up.
Nashville
The city’s startup ecosystem trails its robust music scene--but only slightly.
Seattle
It’s brimming with potential--if you can get past the 800-pound gorilla.
San Jose
Outsized home prices dovetail with generously sized startup checks.
Boston
The talent pipeline is chock full and every bit virtuous.
Portland
It’s a beacon for food nerds--and fintech founders.
Raleigh
Software engineers earn 15 percent less a year than the U.S. average.
Los Angeles
Seekers of fame and fortune still come here--just for different reasons.
Madison
It remains a massive healthcare center—but way less sleepy.
Orlando
The house that Mickey Mouse built is getting some unlikely visitors.
Tampa
Bold-faced names are paying handsomely to see this city succeed.
Colorado Springs
The small-town vibe helps founders scale this wide-open space.
Charlotte
Fintech startups don’t need giant banks nearby to succeed, but it helps.
Palm Bay
The engineering might in Florida’s panhandle is VC catnip.
Atlanta
It’s the premier startup hot spot for black founders in the South.
Bridgeport
It’s a genuine startup haven, say the 19,200 companies founded since January.
Sacramento
This state capital is trading its 10-gallon hat for a 244-acre innovation hub.
Bakersfield
The famed agricultural hub is getting a name for growing entrepreneurs, too.
Washington
The nation’s capital has plenty of appeal--if you can stand the commute.
Dallas
This Texas jobs powerhouse is just warming up.
Lakeland
Population trends make this Central Florida hub boomtown U.S.A.
Spokane
This bastion of blue-collar grit is getting a lift from its tony neighbors.
Ogden
Ski in the winter, hike in the summer, and start up year round.
Greenville
This former textile capital nurtured nearly 1,300 new businesses last year.
North Port
The startup scene is one part low costs and two parts go-getter.
Riverside
The local university became the beating heart of this startup community.
Chattanooga
Gig City: where approachability meets opportunity.
Jacksonville
Startups in other cities are circling around this North Florida hot spot.
Las Vegas
Generous incentives and low taxes stack the deck in favor of entrepreneurs.
Oklahoma City
This city asked its NBA team for an assist on startup investment.
Minneapolis
In the Twin Cities’ version of fostering startups, corporate VCs dominate.
Oxnard
The Silicon Beach party is moving upstate.
Columbia
The state capital’s startup scene lags its South Carolina brethren--for now.
Cape Coral
If you want young talent to stay put, buy into their company building.
Columbus
Early-stage funding remains a bright spot in Ohio’s capital city.
Houston
This Texas energy hub is finding growth in top doctors and space travel.
Springfield
In Pioneer Valley, founders are made, not imported.
Tulsa
The city's growth plans include paying people to move there.
Des Moines
A single tax incentive instantly buoyed Des Moines’s startups.
Albuquerque
Startups are growing in this desert community thanks to high-density work spaces.
Indianapolis
One massive exit and a slew of government incentives lift this Midwestern hub.
Methodology
How Startup Genome Selected the 2020 Surge Cities Index:
JOB CREATION
Over-the-year percent change in the number of jobs from Q1 2018 to Q1 2019.
POPULATION GROWTH
Percentage growth from July 2017 to July 2018.
NET BUSINESS CREATION
Over-the-year percent change in the number of business establishments from Q1 2018 to Q1 2019.
RATE OF ENTREPRENEURSHIP
Percentage of adults who are entrepreneurs, including solo-preneurs, regardless of industry or employment status in the 2018 to 2019 period.
WAGE GROWTH
Over-the-year percent change in average weekly earnings from Q1 2018 to Q1 2019.
HIGH-GROWTH COMPANY DENSITY
Number of high-growth companies for every 100,000 adults, including only Inc. 5000 firms with $2 million in annual revenue and 20% year-over-year growth for three years in 2018 and 2019.
EARLY-STAGE FUNDRAISING DEALS
Number of early-stage funding deals for every 100,000 adults from October 2018 to October 2019.
Inc. has long believed there’s an alchemy that happens when fast-growing companies, innovative activity, and an entrepreneurial environment coalesce in a particular geographic space. Inc. and Startup Genome, an innovation policy company, partnered to create the Surge Cities Index, the definitive ranking of the geography of growth in the U.S.
The Inc. Surge Cities Scores are calculated for the largest 100 metropolitan statistical areas (MSAs) in the United States, according to February 28, 2013, Office of Management and Budget criteria. We use an equally weighted average of the normalized scores of seven metrics.
Once we had the seven normalized scores, the composite index was then calculated for each MSA by computing an equally weighted average of the seven metrics. Finally, to compute the Surge Cities Score, each metropolitan area was ranked in order of its average composite index score.
On metric rankings: When the data allowed for more detailed/precise metrics (e.g., 2 or 3 decimal points), ties were not present. When the data was less exact, ties were present. For editorial purposes, we did not indicate ties.
Sources: Quarterly Census of Employment and Wages and U.S. Census Bureau's Population Estimates Program, Current Population Survey (CPS), American Community Survey (ACS), and Quarterly Census of Employment and Wages, Startup Genome, PitchBook, Inc. 5000
ABOUT STARTUP GENOME
With more than 100 clients across five continents in 38 countries to date, Startup Genome is the top research and policy advisory organization for governments committed to accelerating the success of their startup ecosystem. Read more at startupgenome.com.