Editor’s Note: This story originally appeared on Simply Business.
Business ownership among young Americans is increasing, especially in certain parts of the country.
Traditionally, older Americans are more likely to own businesses, due to greater knowledge, financial resources, and professional networks. However, entrepreneurship is increasingly attracting young Americans, who now view it as a viable career path.
Over the past few years, economic and workforce changes have driven higher levels of business applications, reflecting, in part, increased interest in entrepreneurship among young workers.
According to the latest US Census Bureau data, nearly 3 in 10 business owners nationwide are under the age of 40, and just over 6% of workers under the age of 40 now run their own businesses.
To find the cities with the most young people wanting to be their own bosses, Simply Business researchers analyzed data from the American Community Survey. Find out how to do it at the end.
Here are the top cities where young business owners are thriving.
15. Tulsa, OK
- Share of all business owners under 40: 31.9%
- Share of all workers under 40: 47.7%
- Share of workers under 40 who own businesses: 7.3%
- Share of all employees who own businesses: 10.9%
- Total business owners under the age of 40: 20,226
- Total business owners: 63,313
- Total workforce under 40: 276,177
- Total staff: 579,310
14. Jacksonville, FL
- Share of all business owners under 40: 32%
- Share of all workers under 40: 45.7%
- Share of workers under 40 who own businesses: 7%
- Share of all employees who own businesses: 10%
- Total business owners under the age of 40: 29,553
- Total business owners: 92,427
- Total workforce under 40: 424,526
- Total staff: 928,685
13. Las Vegas-Henderson-North Las Vegas, NV
- Share of all business owners under 40: 32.1%
- Share of all workers under 40: 46.4%
- Share of workers under 40 who own businesses: 6.8%
- Share of all employees who own businesses: 9.8%
- Total business owners under the age of 40: 38,582
- Total business owners: 120,374
- Total workforce under 40: 570,614
- Total staff: 1,230,298
12. Dallas-Fort Worth-Arlington, TX
- Share of all business owners under 40: 32.1%
- Share of all workers under 40: 47.9%
- Share of workers under 40 who own businesses: 6.6%
- Share of all employees who own businesses: 9.8%
- Total business owners under the age of 40: 141,634
- Total business owners: 441,108
- Total workforce under 40: 2,161,707
- Total staff: 4,516,423
11. Virginia Beach-Chesapeake-Norfolk, VA-NC
- Share of all business owners under 40: 32.7%
- Share of all workers under 40: 48.5%
- Share of workers under 40 who own businesses: 5.6%
- Share of all employees who own businesses: 8.2%
- Total business owners under the age of 40: 31,364
- Total business owners: 95,927
- Total workforce under 40: 564,755
- Total staff: 1,165,240
10. San Antonio-New Braunfels, TX
- Share of all business owners under 40: 32.8%
- Share of all workers under 40: 48.7%
- Share of workers under 40 who own businesses: 7.1%
- Share of all employees who own businesses: 10.5%
- Total business owners under the age of 40: 52,188
- Total business owners: 159,137
- Total workforce under 40: 734,556
- Total staff: 1,508,772
9. Memphis, TN-MS-AR
- Share of all business owners under 40: 33.4%
- Share of all workers under 40: 46.4%
- Share of workers under 40 who own businesses: 6.3%
- Share of all employees who own businesses: 8.7%
- Total business owners under the age of 40: 23,177
- Total business owners: 69,375
- Total workforce under 40: 370,357
- Total staff: 797,338
8. Seattle-Tacoma-Bellevue, WA
- Share of all business owners under 40: 33.5%
- Share of all workers under 40: 49.9%
- Share of workers under 40 who own businesses: 6.2%
- Share of all employees who own businesses: 9.2%
- Total business owners under the age of 40: 71,784
- Total business owners: 214,482
- Total workforce under 40: 1,163,748
- Total staff: 2,333,585
7. Nashville-Davidson-Murfreesboro-Franklin, TN
- Share of all business owners under 40: 33.7%
- Share of all workers under 40: 48.5%
- Share of workers under 40 who own businesses: 6.9%
- Share of all employees who own businesses: 10%
- Total business owners under the age of 40: 40,743
- Total business owners: 121,036
- Total workforce under 40: 586,436
- Total staff: 1,208,944
6. Louisville/Jefferson County, KY-IN
- Share of all business owners under 40: 33.9%
- Share of all workers under 40: 46.5%
- Share of workers under 40 who own businesses: 6.6%
- Share of all employees who own businesses: 9.1%
- Total business owners under the age of 40: 23,422
- Total business owners: 69,098
- Total workforce under 40: 353,491
- Total staff: 760,485
5. Grand Rapids-Wyoming-Kentwood, MI
- Share of all business owners under 40: 35.2%
- Share of all workers under 40: 49.1%
- Share of workers under 40 who own businesses: 6.5%
- Share of all employees who own businesses: 9%
- Total business owners under the age of 40: 23,376
- Total business owners: 66,419
- Total workforce under 40: 361,926
- Total staff: 737,702
4. Oklahoma City, OK
- Share of all business owners under 40: 35.2%
- Share of all workers under 40: 49.9%
- Share of workers under 40 who own businesses: 7.4%
- Share of all employees who own businesses: 10.4%
- Total business owners under the age of 40: 31,483
- Total business owners: 89,326
- Total workforce under 40: 428,279
- Total staff: 858,484
3. Austin-Round Rock-San Marcos, TX
- Share of all business owners under 40: 36.4%
- Share of all workers under 40: 51.1%
- Share of workers under 40 who own businesses: 8.3%
- Share of all employees who own businesses: 11.6%
- Total business owners under the age of 40: 63,247
- Total business owners: 173,631
- Total workforce under 40: 764,138
- Total staff: 1,496,070
2. Fresno, CA
- Share of all business owners under 40: 36.8%
- Share of all workers under 40: 49.6%
- Share of workers under 40 who own businesses: 7.7%
- Share of all employees who own businesses: 10.4%
- Total business owners under the age of 40: 21,041
- Total business owners: 57,157
- Total workforce under 40: 273,115
- Total staff: 550,794
1. Birmingham, AL
- Share of all business owners under 40: 37.1%
- Share of all workers under 40: 46%
- Share of workers under 40 who own businesses: 7.5%
- Share of all employees who own businesses: 9.3%
- Total business owners under the age of 40: 21,674
- Total business owners: 58,410
- Total workforce under 40: 289,236
- Total staff: 628,684
How to do it
The data used in this analysis comes from the US Census Bureau’s 2023 American Community Survey PUMS 1-Year Estimates.
To find the areas with the most young business owners, Simply Business researchers calculated the share of all senior business owners under the age of 40. In terms of equity, the area with the largest total number of business owners under the age of 40 is ranked highest.
In line with improved comparability across areas, individuals who did not work or reported income in the past 12 months were excluded from the analysis.
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