Accolades for MSP’s enviable work-life benefits are flying faster and thicker than snow this season, and it’s getting tough to keep up with the latest hits. Earlier this month, influential personal finance site NerdWallet dropped the latest data-driven love letter to the Twin Cities: a
Best Cities for Young Entrepreneurs roundup that placed MSP fifth, ahead of regional rivals (Madison) and heavy-hitting coastal tech hubs (Seattle and Boston).
The study examined about 180 of the country’s largest metro areas and assigned a young entrepreneur friendliness score to each. MSP earned its fifth-place spot thanks to two data points in particular: unemployment rate and SBA loan value per 100,000 residents.
On the unemployment front, MSP is peerless among major cities. Metro-wide unemployment was just a tick over 3 percent as of September 2015, the latest month for which final figures were available as the study went to press. That’s lower than San Francisco (3.4 percent), Denver (4.2 percent) and Washington, D.C. (7.5 percent).
The SBA loans metric is admittedly wonkier, but it’s a critical factor in local small business health. Many startups rely on SBA funding to get off the ground and gain traction; an adequate SBA loan is often the difference-maker for businesses navigating the dreaded “death zone” — the first two to three years of existence.
According to Jonathan Todd, the study’s author, the SBA loan factor counts for 20 percent of the overall score, more than unemployment rate, small businesses per 100 residents and other factors. MSP ranked seventh, just behind famously entrepreneurial Austin and industrious Salt Lake City — and well ahead of major metropolises like New York City, which ranked 52nd.
In the study, Todd notes that small business success comes down to a confluence of other factors: cost of living, educational attainment and existing resources for entrepreneurs. MSP has long led most other big cities with regards to cost of living and educational attainment. Until recently, though, it hasn’t done so hot on the admittedly hard-to-measure entrepreneurial resources metric.
Here’s a sign of change and that MSP’s startup-friendly secret is finally getting out:
Industrious, a well-funded coworking company with outposts in more than a dozen major U.S. cities, recently opened a gleaming new space in the North Loop. Industrious’s arrival comes on the heels of
COCO NE’s debut — joining the swelling ranks of private coworking spaces around the Twin Cities.
Entrepreneurs take note: MSP is open for business.