Philadelphia ranked the third U.S. city for a low cost of living, an abundance of highly-skilled talent, and young entrepreneurs. Last year, Philadelphia ranked 11th on this list, a sign of major growth for our region.
LendingTree found that the average age of entrepreneurs in Philadelphia is slightly younger than 38 years old. Whereas other major U.S. cities, such as Boston (#10), New York City (#16), and Los Angeles (#40), attract entrepreneurs slightly older at 39 to 40 years old.
The study found that younger entrepreneurs are attracted to cities with a lower cost of living.
“Older entrepreneurs may have higher returns, but younger founders are willing to try new things,” said Derek Miller, a research analyst at LendingTree. “That can lead to breakthroughs and culturally defining businesses.”
In Philadelphia, the cost of living is approximately $2,700 cheaper than San Francesco, CA (#38), the Silicon Valley capital.
“There’s always a risk for an entrepreneur,” said Miller. “But when the cost of living isn’t as high, many young people are willing to take that risk.”
The world-class universities and colleges in Greater Philadelphia also create a rich talent pool of young entrepreneurs.
Last month, Drexel University announced a partnership with DXC Technology to open a new AI studio on Drexel’s campus. The partnership is expected to attract and retain top talent to the Greater Philadelphia region.