Why Is Memphis a Good Place to Start a Business? Memphis: A Hub for Entrepreneurs and Minority Business Owners

Growth of Female and Minority-Owned Businesses in Memphis

Memphis is a leader in female-owned business growth. As of 2021, 71% of small businesses have websites. Memphis provides a wide range of business incentives at the state and local levels. Memphis is an ideal place to start a business because it is one of the most affordable cities in the country. It has low labor costs and an abundance of local resources to help you get started. You can also find funding through angel investors and venture capitalist groups. Memphis has a thriving entrepreneurial community with numerous resources and organizations available to support entrepreneurs at all stages of their journey because this city offers good connectivity and business opportunities.

Steps to Starting a Business in Memphis

Now that you know what makes Memphis of Tennessee good for business, let’s get started with the exact steps on how to start a business in Memphis.

  1. How to Start a Business in Memphis, TN.
  2. Starting a business in Memphis, TN, needs planning, financial decisions, legal procedures, and a handful of other things.
  3. These steps are general steps and are subject to change depending on the structure of your business.
  4. Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business.

Opportunities and Support for Startups

Memphis is ranked 7th as one of the best cities to start a business. It is also ranked as the 9th city with the lowest cost of starting a business. Availability of resources, attractive corporate taxes, labor costs, industry diversity, and accessibility of office space per square meter are great reasons to start own business in Memphis. The cost of living goes in favor of moving to Memphis.

National Comparison and Economic Landscape

Where is the best city to launch a startup? Las Vegas is the best place to start a business, with the lowest corporate tax rate (0.65%) and highest employment growth rate in the last 12 months (8.5%) of all 50 cities studied. When starting a business, choosing the right location is everything. Approximately 20% of new businesses fail in the first 12 months, and 45% won’t survive the first five years. Launching a startup is even riskier during the pandemic, which has caused more than one-third of small businesses to close since 2020. But the best cities can help startups survive.

Empowering Minority Business Owners in Memphis

Is Memphis a good place to be a minority business owner? Memphis ranks as one of the top cities for minority-owned businesses. Over 60% of Memphis residents are Black, making it a minority-majority city.

Memphis aims to accelerate minority-owned business growth through The 800 Initiative. Launched in 2018, it assists 800 identified minority firms to increase revenue by $50 million by 2023. The program offers coaching, assistance, education and funding access to help companies scale.

A study ranked Memphis first among cities where minority businesses thrive, citing factors like low unemployment and cost of living. The business climate, economy and financing access also make Memphis ideal. The city provides a supportive environment for minority entrepreneurs to start and run businesses successfully. Though barriers exist, Memphis offers resources to equip minority owners to conceive, launch and scale enterprises.

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