Looking to start a business? Winston-Salem and Greensboro are two of the best places in the country to do so, a new study says.
Winston-Salem ranks as the 16th best U.S. metro to start a business, with Greensboro one spot behind at No. 17, according to a study by commercial real estate company 42Floors.
The study examined all U.S. metros with at least 300,000 residents and ranked them based on several factors – number of startups, exit rate, coworking spaces, number of startup-oriented companies, regional price parity, labor and office space costs and taxes.
Two other North Carolina metros made the top 20, both in the Research Triangle. Raleigh came in at No. 5 and Durham came in at No. 6. North Carolina tied Texas for the most cities ranked in the top 20 with four.
The top 4 were Las Vegas, Nevada; Boulder, Colorado; Austin, Texas; and Columbus, Ohio.
Affordability made Winston-Salem and Greensboro strong contenders, with Winston-Salem first in regional price parity at 89% and office space costs at $17,440 for a 1,000-square-foot space.
“While affordability was the city’s strongest suit, it was by no means its only upside,” the study said. “Winston-Salem is a burgeoning innovation hub that also benefits from the recent inflow of talent and investment into North Carolina.
“The context is similar in nearby Greensboro, which didn’t rank first in any indicator, but also stood out as an affordable option amid North Carolina’s startup surge that could favor companies in other industries, as well.”
Here’s how the cities fared in each of the categories that 42Floors used:
Winston-Salem
- Startups (as percentage of total companies in 2020): 29.2%
- Establishment exit rate (percentage of companies that stop operations within a year): 16.8%
- Coworking spaces per 100,000 residents: 0.6
- Startup-oriented companies (such as law firms, consulting firms, financing organizations and advertising agencies as percentage of total companies): 7.4%
- Regional price parity as of 2020: 89%
- Average labor cost per employee as of 2021: $40,443
- Average 1,000-square-foot office space cost: $17,440
- Corporate income tax: 2.5%
- Combined state and average local sales tax: 7.0%
Greensboro
- Startups (as percentage of total companies in 2020): 27.6%
- Establishment exit rate (percentage of companies that stop operations within a year): 15.6%
- Coworking spaces per 100,000 residents: 0.6
- Startup-oriented companies (such as law firms, consulting firms, financing organizations and advertising agencies as percentage of total companies): 8%
- Regional price parity as of 2020: 90.4%
- Average labor cost per employee as of 2021: $39,654
- Average 1,000-square-foot office space cost: $20,960
- Corporate income tax: 2.5%
- Combined state and average local sales tax: 7.0%
The Triad is home to a number of entrepreneurial support organizations, such as Winston Starts, Agile City, the Nussbaum Center for Entrepreneurship and Launch Greensboro. See the whole list, compiled by TBJ, here.
