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