If you are thinking about launching your own business, you might assume that New York or Miami is the place to be. But WalletHub’s latest report shows that these cities may not give you the best bang for your buck—or your effort.
What are the best big cities to start a business in 2025?
Orlando, Florida, ranks as the best large city to start a business in 2025. According to WalletHub, Orlando earned the top spot thanks to its strong business environment, fast-growing startup community, and access to capital. The city has seen one of the fastest increases in small business growth and also scored high on the Kauffman Index for early-stage entrepreneurship. What that means for you: more businesses are being launched here, and more of them are surviving past that tricky first year.
If you want your startup to not just launch, but thrive, then it is worth looking at the numbers behind these rising startup cities.
Why is Orlando, Florida ranked #1 for startups?
So, why is Orlando doing so well while bigger names like NYC are falling behind? The answer is simple: affordability, investor access, and a booming business environment.
Startups in Orlando benefit from:
- A high number of investors per capita
- Lower office space costs compared to coastal cities
- A strong survival rate for new businesses
“Starting a business can be very intimidating, considering that one in five startups doesn’t make it past their first year,” says WalletHub analyst Chip Lupo. “That’s why it’s especially important to live in a city that offers an environment where startups can thrive.”
In Orlando, you are not only more likely to find funding—you are also more likely to find customers and collaborators. Whether you are opening a cafe or launching a tech app, this city gives you a better shot at long-term profitability.
Is Austin, Texas still a good place to launch a startup?
Yes, and it is sitting strong at the number three spot on WalletHub’s 2025 list. Austin earned high marks for its business environment and access to resources. It is especially popular among tech entrepreneurs and creative professionals.
One thing to keep in mind, though, is cost. While Austin is rich in talent and innovation, the cost of doing business is rising—fast. It ranked 81st in business costs, which means you will need to budget carefully if you choose this hotspot. Still, if you are in tech or creative services and you are ready to hustle, Austin can offer some serious opportunities.
How does Tampa compare to other business-friendly cities?
You might be surprised to learn that Tampa took the number two spot, just behind Orlando. It scored high in both business environment and resource access. That makes Tampa a solid choice for entrepreneurs who want the benefits of a Florida-based business with slightly different demographics and growth patterns.
Tampa is especially attractive if you are looking for:
- Lower labor costs than other major metros
- Access to capital
- A growing local economy
It is also worth noting that the business culture in Tampa is becoming more startup-friendly, with co-working spaces, networking events, and investor interest all on the rise.
Why are cities like New York and Washington, DC ranked so low?
It all comes down to cost. New York City ranked 96th on the list with poor scores in business cost and environment. Washington, DC came in dead last at number 100.
The high cost of rent, labor, and general operations in these cities makes it incredibly difficult for new businesses to survive, especially if you are bootstrapping your startup. Plus, competition is fierce. Unless you already have deep pockets or a strong network, these cities may work against you, not for you.
If profitability is your goal in 2025, then your best bet is to aim for cities that support startups with affordable operations, easier access to funding, and a better quality of life. Orlando, Tampa, Austin, and Jacksonville are all proving to be those kinds of places.
