AUSTIN (KXAN) — Austin ranks second in recent business formation growth, according to a new analysis by LinkedIn's Economic Graphs team.
Hotspots for new entrepreneurs:
- San Francisco
- Miami – Fort Lauderdale
- new york city
- Los Angeles
The report noted that these metros span all major time zones in the country.
“Austin, Texas (No. 2) and Chicago (No. 5) stand out in the central United States, while Denver (No. 10) has a presence in mountain time zones. On the West Coast, Seattle (No. 3), San Francisco (4th) and Los Angeles (9th) are the leaders,” the report states.
George Anders, the report's author, said that a few years ago it seemed like fewer Americans wanted to start a business.
“According to the Kauffman Foundation, from 2007 to 2018, only 1.1 in 1,000 U.S. residents started a business each year, down from 1.6 in 2005,” Anders wrote.
But he noted that the pandemic may have “rekindled people's desire to run their own shows.”
“According to Kaufman data, by 2021 (the most recent year available), the U.S. entrepreneurship rate had rebounded to 1.5 per 1,000 people,” the report said.
In this analysis, researchers ranked the largest cities with the highest growth in business formation index from June to August 2023 compared to the same period in 2022.
“The index is the three-month average number of unique companies on LinkedIn, measured by the number of LinkedIn members who added a new founder title to their profile, indexed to the corresponding number in 2016. We only include LinkedIn members who added a founder and started the new job in the same month,” the report states.
new wine business
Gabe Anderson has thrown his all into opening Vintage Wine Storage, a 13,000-square-foot new business in northwest Austin.
It just opened three weeks ago.
Anderson said it's an off-side wine storage facility that provides a temperature- and climate-controlled space for customers to store their wine collections.
“We store wine off-site and bring together people who want to drink wine together in our on-site tasting room,” Anderson said. “For wine collectors, we have backup generators. We do pick-up and delivery. We also do wine shipping and delivery. Basically, we’re just trying to make wine collectors’ lives easier.” .”
Anderson said she moved to Austin from Dallas with her family seven years ago. He realized that there were no such facilities in the area.
“This was my idea for the city of Austin as it continues to grow, and I thought it would serve a purpose and meet a need,” he said.
Anderson said Austin is a great city for this business as well as a variety of other new businesses.
Many others agree.
“2023 has certainly seen a significant increase in the number of people interested in running their own businesses,” said FranNet Franchise Consultant Kyle DeHaas.
DeHaas said more people are starting businesses in places where there is economic stability.
“Where people are buying services and products over and over again,” DeHaas says. “I think personal services such as home consumer services, children's education, elderly care, health, beauty and fitness are doing well.”
Ultimately, Mr. Anderson is excited to embark on this new journey and become a part of Austin's thriving business community.
“Get people together, have some wine, enjoy the facilities and just have a good time,” Anderson said.
As for why we're seeing this growth, Opportunity Austin President Gary Farmer said part of it is due to the city's vibrant workforce.
“These are all educated, entrepreneurial, innovative young people,” Farmer said. “They want their shot. I'm proud they accepted it.”
Farmer said Austin has more investors and venture capitalists and more financial resources to support growing businesses and businesses.
“As young, growing companies hit certain benchmarks along the way and need more and more capital, they have to move to more money center locations,” Farmer said. “We are now that money center.”