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The Best Places for Small Business

By Jennifer Hopfinger
April 14, 2008 01:24 PM
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Money magazine does a well-known annual ranking of the best places to live in America, and in April, Fortune Small Business put a twist on the idea with its ranking of the best places to launch a small business. “FSB lists the top 100 towns, both big and small, that offer entrepreneurs a great lifestyle as well as an environment that fosters business growth.” In addition to the list, the magazine profiles some of the top cities and some of the small business owners who live there.

The list was compiled using criteria such as economic conditions, local tax rates, startup activity, natural beauty, affordable housing and easy access to all kinds of entertainment. The latter could include great hiking close to downtown, as in the case of Manchester, New Hampshire, which is No. 13 on the list, or the proximity to a vibrant college community, as in the case of Iowa City, which is No. 21. Bellevue, Wash., just outside Seattle, topped the list, thanks largely to its strong and growing tech industry and beautiful natural surroundings. The magazine also points out the drawbacks--such as expensive homes and high taxes in the case of Bellevue.

“Nearly 40 million Americans move every year, seeking a better job, a bigger or smaller house, nicer weather or quality schools for their children,” writes reporter Joanne Chen. “Nowadays U.S. entrepreneurs have a particular incentive to be mobile. While the digital revolution may have flattened the earth, it has also prompted new appreciation for the pleasures of real local life. Now that broadband communication and widespread, relatively inexpensive air travel have transformed many beautiful but remote spots into viable business hubs, there's less reason to sacrifice lifestyle on the altar of entrepreneurial success. If you're surgically attached to a cellphone and a keyboard during working hours, it's all the more crucial for sanity's sake that the natural surroundings soothe and the downtown energizes.”

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