Young entrepreneurs should bring their ambition, talent and work ethic to affordable cities with booming economies, innovative industries, a talented labor pool and sprawling professional networks. There are many to choose from, but an exceptional trio of cities stands out.
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The list includes only cities with average Zillow home values lower than the national average, which the platform cites as $367,711 as of Jun. 10, and below-average living costs, as calculated by AreaVibes.
Each is also business-friendly, with favorable regulations, modest tax burdens and large influxes of young founders flocking to its plentiful resources, strategic infrastructure and strong livability ratings.
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Kansas City, Missouri
Cost of living: 6% below the national average
Average home value: $249,725
In February, Silicon Prairie News reported that a co-warehousing startup called Elevator, founded in Omaha in 2021, was expanding into Kansas City. This up-and-coming company is hardly alone.
Kansas City is a major hub in the so-called Silicon Prairie, a network of affordable Midwest metros with booming tech sectors, diverse economies and fast-growing, innovative companies.
According to corporate campus provider Aspira, which leases 3.8 million square feet of Class-A office space in K.C. Metro, Kansas City:
Is home to more than 1 million non-farm employees.
Ranks No. 3 in tech job growth behind only San Francisco and Austin.
Is a trendy city that skews young.
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St. Cloud, Minnesota
Cost of living: 1% below the national average
Average home value: $257,547
According to the city’s Economic Development Authority (EDA), St. Cloud has been known for more than a decade as Minnesota’s Silicon Prairie, thanks to its vibrant tech sector, diverse economy, reliable public transit, major transportation centers and robust digital infrastructure. The downtown area has more than a dozen high-tech companies in a five-block radius, and 100% of the city lives in an area with at least three broadband carriers.
Its entrepreneurial ecosystem includes initiatives like StageWorks, which provides pop-up storefront spaces, co-working memberships and flexible and affordable office rentals. The Greater St. Cloud Development Corporation provides resources like free business coaching, resource matchmaking events and pitch competitions.
Florence, Alabama
Cost of living: 14% below the national average
Average home value: $203,967
Founders who prefer life in a small city of roughly 40,000 people might consider Florence, which has exceptionally-low living and housing costs but a wealth of resources for entrepreneurs, including:
The Shoals Business Incubator: Maintains a 90% success rate in incubating more than 300 businesses over 30 years.
Alabama Small Business Development Center at University of North Alabama, Florence: The University of North Alabama’s SBDC has offered free training and advising services to existing and aspiring small business owners since 1980.
Remote Shoals: The program offers remote workers $10,000 to move to the Shoals region, which includes Florence.
The Shoals Economic Development Authority: Includes a variety of tax incentives and grants, financing and workforce development programs among its many business-assistance offerings.
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This article originally appeared on GOBankingRates.com: 3 Affordable Cities for Young Entrepreneurs
