Are you interested in starting a new insurance agency? Or, if you're already an insurance agent, are you interested in adding young entrepreneurs to your client base? Well, some cities are friendlier — and cheaper — than others to launch a business, especially if you're just starting out in your career.
To find the best places to start a small business, NerdWallet recently analyzed 181 metropolitan areas in the United States — each area for which cost of living information was available. Researchers analyzed data on the local business environment and economy from sources including the U.S. Bureau of Labor Statistics, U.S. Census Bureau, and the U.S. Small Business Administration.
Because a young, local entrepreneurial community is most likely to flourish with networking and knowledge-sharing opportunities, NerdWallet factored in the population ages 25-34, as well as the education level of each city.
Many top cities for young entrepreneurs are on the expensive side, but three of the top 10 cities offer costs of living below the national average. By reducing living and office space costs, entrepreneurs have more cash to invest in their growing businesses. The good news is that you can find small-business loans in any city.
Here are the top 25 cities in America for young entrepreneurs, including ambitious insurance professionals interested in opening a new insurance agency:
Lincoln is the capital of the state of Nebraska and the second-most populous city in Nebraska. (Photo: Wikipedia)
|25. Lincoln, Neb.
Overall score: 59.41
Median earnings: $39,110
Population age 25-34: 14.20%
Population with a bachelor's degree or higher: 35.60%
Unemployment rate as of Sept. 2015: 2.20%
Small businesses per 100 residents: 2.51
SBA loans per 100,000 residents: $7,959,760
Median earnings: $45,007
Population age 25-34: 13.10%
Population with a bachelor's degree or higher: 30.60%
Unemployment rate as of Sept. 2015: 3.50%
Small businesses per 100 residents: 2.3
SBA loans per 100,000 residents: $15,121,625
St. George is a city located in the southwestern part of the state of Utah on the Utah-Arizona border. (Photo: Nick Christensen via Wikipedia)
|23. St. George, Utah
Overall score: 59.5
Median earnings: $36,762
Population age 25-34: 12.80%
Population with a bachelor's degree or higher: 25.40%
Unemployment rate as of Sept. 2015: 3.70%
Small businesses per 100 residents: 2.67
SBA loans per 100,000 residents: $18,785,769
The Pappajohn Sculpture Park, in Des Moines's downtown Western Gateway Park, plays host to the Des Moines Arts Festival. (Photo: Wikipedia)
|22. Des Moines-West De Moines, Iowa
Overall score: 59.9
Median earnings: $47,904
Population age 25-34: 14.90%
Population with a bachelor's degree or higher: 36.10%
Unemployment rate as of Sept. 2015: 3.10%
Small businesses per 100 residents: 2.31
SBA loans per 100,000 residents: $5,264,811
Manhattan is a city in northeastern Kansas, located at the junction of the Kansas River and Big Blue River. (Photo: Manhattan Convention and Visitors Bureau)
|21. Manhattan, Kan.
Overall score: 59.95
Median earnings: $38,454
Population age 25-34: 16.80%
Population with a bachelor's degree or higher: 45.80%
Unemployment rate as of Sept. 2015: 2.90%
Small businesses per 100 residents: 2.06
SBA loans per 100,000 residents: $4,762,516
Downtown New York is seen at top in this view from the air approaching Newark Liberty International Airport, Jan. 30, 2014, in Newark, N.J. (AP Photo)
|20. New York City-Newark-Jersey City
Overall score: 60.76
Median earnings: $52,252
Population age 25-34: 14.50%
Population with a bachelor's degree or higher: 37.90%
Unemployment rate as of Sept. 2015: 4.90%
Small businesses per 100 residents: 2.68
SBA loans per 100,000 residents: $10,243,343
The “Super Duck II” cruises Portland Harbor Oct. 1, 2002, during an amphibious tour of Portland, Maine. The tour, which lasts over an hour, takes passengers through downtown Portland and along the working waterfront. (Photo: Joel Page/AP Photo)
|19. Portland-South Portland, Maine
Overall score: 61
Median earnings: $45,836
Population age 25-34: 12.20%
Population with a bachelor's degree or higher: 38.60%
Unemployment rate as of Sept. 2015: 3.00%
Small businesses per 100 residents: 3.16
SBA loans per 100,000 residents: $11,634,852
In this Nov. 25, 2009 file photo, The BMW Oracle trimaran sails past the San Diego skyline during testing in San Diego. (Photo: Lenny Ignelzi/AP Photo)
|18. San Diego-Carlsbad, Calif.
Overall score: 62.61
Median earnings: $50,392
Population age 25-34: 16.20%
Population with a bachelor's degree or higher: 37.10%
Unemployment rate as of Sept. 2015: 4.60%
Small businesses per 100 residents: 2.68
SBA loans per 100,000 residents: $12,970,276
In this June, 17, 2015 photo, vehicles travel along Williston Road during the afternoon rush hour in Burlington, Vt., Despite having minor traffic congestion problems when compared with other parts of the country, Vermont officials continue to encourage commuters to share rides and take public transportation. (Photo: Wilson Ring/AP Photo)
|17. Burlington-South Burlington, Vt.
Overall score: 62.95
Median earnings: $47,268
Population age 25-34: 13.6%
Population with a bachelor's degree or higher: 41.7%
Unemployment rate as of Sept. 2015: 3.2%
Small businesses per 100 residents: 2.96
SBA loans per 100,000 residents: $10,030,766
Raleigh is the capital of North Carolina and the second most populous city in the state. (Photo: Gerry Broome/AP Photo)
|16. Raleigh, N.C.
Overall score: 63.05
Median earnings: $47,618
Population age 25-34: 13.9%
Population with a bachelor's degree or higher: 43.4%
Unemployment rate as of Sept. 2015: 4.6%
Small businesses per 100 residents: 2.28
SBA loans per 100,000 residents: $10,020,435
A Washington Metro train crosses the Potomac River with the skyline of Roslyn, Va., in the distance, Sept. 25, 2014. (Photo: J. Scott Applewhite/AP Photo)
|15. Washington, D.C.-Arlington-Alexandria
Overall score: 63.1
Median earnings: $62,172
Population age 25-34: 15.5%
Population with a bachelor's degree or higher: 49.3%
Unemployment rate as of Sept. 2015: 4.3%
Small businesses per 100 residents: 2.26
SBA loans per 100,000 residents: $7,364,348
The North Dakota State Capitol, a 21 story tower, is located in Bismarck. (Photo: iStock)
|14. Bismarck, N.D.
Overall score: 63.99
Median earnings: $42,655
Population age 25-34: 14.5%
Population with a bachelor's degree or higher: 32.2%
Unemployment rate as of Sept. 2015: 2%
Small businesses per 100 residents: 2.89
SBA loans per 100,000 residents: $10,720,089
Anchorage, Alaska's largest city, is in the south-central part of the state on the Cook Inlet. (Photo: iStock)
|13. Anchorage, Alaska
Overall score: 64.76
Median earnings: $55,009
Population age 25-34: 16.2%
Population with a bachelor's degree or higher: 29.7%
Unemployment rate as of Sept. 2015: 5.1%
Small businesses per 100 residents: 2.53
SBA loans per 100,000 residents: $14,424,330
Columbia is the county seat of Boone County, Mo., and home to the University of Missouri. (Photo: Wikipedia)
|12. Columbia, Mo.
Overall score: 65
Median earnings: $41,235
Population age 25-34: 14.80%
Population with a bachelor's degree or higher: 44.7%
Unemployment rate as of Sept. 2015: 3.1%
Small businesses per 100 residents: 2.44
SBA loans per 100,000 residents: $10,513,209
Downtown Fairbanks, Alaska, along the Chena River. (Photo: iStock)
|11. Fairbanks, Alaska
Overall score: 65.82
Median earnings: $56,653
Population age 25-34: 17.3%
Population with a bachelor's degree or higher: 34.4%
Unemployment rate as of Sept. 2015: 4.7%
Small businesses per 100 residents: 2.4
SBA loans per 100,000 residents: $11,505,078
The Fargo Theatre in Fargo, N.D. (Photo: iStock)
|10. Fargo, N.D.
Overall score: 66.4
Median earnings: $42,704
Population age 25-34: 16.3%
Population with a bachelor's degree or higher: 36.7%
Unemployment rate as of Sept. 2015: 2.1%
Small businesses per 100 residents: 2.61
SBA loans per 100,000 residents: $10,303,954
U.S. Coast Guard boats patrol the Boston Harbor, Jan. 5, 2015. (Photo: Michael Dwyer/AP Photo)
|9. Boston-Cambridge-Newton, Mass.
Overall score: 66.64
Median earnings: $60,168
Population age 25-34: 14.5%
Population with a bachelor's degree or higher: 45.2%
Unemployment rate as of Sept. 2015: 4.1%
Small businesses per 100 residents: 2.47
SBA loans per 100,000 residents: $11,384,097
Midland is located in southwest Texas. (Photo: iStock)
|8. Midland, Texas
Overall score: 66.79
Median earnings: $52,261
Population age 25-34: 16.9%
Population with a bachelor's degree or higher: 25.5%
Unemployment rate as of Sept. 2015: 3.3%
Small businesses per 100 residents: 2.9
SBA loans per 100,000 residents: $6,707,714
Downtown Madison, Wis. (Photo: iStock)
|7. Madison, Wis.
Overall score: 67.45
Median earnings: $48,194
Population age 25-34: 14.9%
Population with a bachelor's degree or higher: 44.7%
Unemployment rate as of Sept. 2015: 2.7%
Small businesses per 100 residents: 2.4
SBA loans per 100,000 residents: $11,354,367
Downtown Seattle with Mount Rainier in the background. (Photo: iStock)
|6. Seattle-Tacoma-Bellevue, Wash.
Overall score: 69.57
Median earnings: $55,123
Population age 25-34: 16%
Population with a bachelor's degree or higher: 39.4%
Unemployment rate as of Sept. 2015: 4.3%
Small businesses per 100 residents: 2.53
SBA loans per 100,000 residents: $13,807,823
View of downtown Minneapolis, Minnesota. (Photo: iStock)
|5. Minneapolis-St. Paul-Bloomington, Minn.
Overall score: 71.56
Median earnings: $51,496
Population age 25-34: 14.8%
Population with a bachelor's degree or higher: 40%
Unemployment rate as of Sept. 2015: 3.1%
Small businesses per 100 residents: 2.48
SBA loans per 100,000 residents: $15,957,600
Downtown Denver skyscrapers with the Rocky Mountains in the background. (Photo: iStock)
|4. Denver-Aurora-Lakewood, Colo.
Overall score: 71.75
Median earnings: $49,713
Population age 25-34: 15.9%
Population with a bachelor's degree or higher: 40.8%
Unemployment rate as of Sept. 2015: 3.20%
Small businesses per 100 residents: 2.62
SBA loans per 100,000 residents: $14,648,482
Downtown Salt Lake City, Utah. (Photo: iStock)
|3. Salt Lake City, Utah
Overall score: 72.03
Median earnings: $41,915
Population age 25-34: 16.3%
Population with a bachelor's degree or higher: 31.3%
Unemployment rate as of Sept. 2015: 3.1%
Small businesses per 100 residents: 2.5
SBA loans per 100,000 residents: $21,590,164
The San Francisco-Oakland Bay bridge. (Photo: iStock)
|2. San Francisco-Oakland-Hayward, Calif.
Overall score: 74.88
Median earnings: $61,810
Population age 25-34: 15.7%
Population with a bachelor's degree or higher: 45.9%
Unemployment rate as of Sept. 2015: 3.8%
Small businesses per 100 residents: 2.51
SBA loans per 100,000 residents: $15,826,472
Downtown Austin, with a view of the Texas State Capitol. (Photo: iStock)
|1. Austin-Round Rock, Texas
Overall score: 75.67
Median earnings: $45,649
Population age 25-34: 17.5%
Population with a bachelor's degree or higher: 41.5%
Unemployment rate as of Sept. 2015: 3.3%
Small businesses per 100 residents: 2.2
SBA loans per 100,000 residents: $17,692,769
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Jayleen R. Heft
Jayleen Heft is the digital content editor for PropertyCasualty360.com. Contact her at [email protected].
