The concentration of wealth found in Silicon Valley, New York City, and Boston has driven up the cost of doing business in these locations making it difficult for lean new businesses to get started. Startups are beginning to consider venturing out of the traditional innovation corridors to earn more profit by lowering their costs. Founders and investors such as Steve Case, co-founder of AOL and the venture capital firm Revolution, are comparing major cities throughout the country to uncover which cities have the most potential for their new and emerging companies.
“The goal is to level the playing field so everybody, everywhere who has an idea has a shot at building a company and the American Dream,” said Case recent Forbes article.
Forbes’s list of the Top 10 Rising Cities for Startups compared the cities on cost of living and doing business, entrepreneurship rates, and education levels. Philadelphia was ranked number eight on this list primarily due to its access and proximity to other east coast cities, low cost of doing business, and being home to the second largest university population in the country.
The unparalleled infrastructure and convenient location among major cities, such as New York City, Boston, and Washington D.C., makes Philadelphia an ideal location for startups. Philadelphia is much more cost effective to operate due to the cost of doing business at only two percent over the national average.
The Forbes ranking supports the continued growth of startups in the Greater Philadelphia community, exemplified in the 132 companies in the Philadelphia Metro area who recently made the Inc. 5,000 list of the U.S.’s fastest growing companies.