Millennial Enterprise

Austin declared America's best city for young entrepreneurs

Austin declared America's best city for young entrepreneurs

SXSW Festival Austin skyline
Austin is the place for young entrepreneurs. SXSW/Facebook

Austin is lauded for a lot of things — our live music scene, party city status, and attractiveness to travelers have all earned top honors recently. Our latest honor, however, is more inspirational: Austin is the best city in America for young entrepreneurs.

Banking website MoneyRates.com analyzed 380 cities based on population growth, young adult affluence, state tax burdens, and educational attainment to determine which have the best environment for entrepreneurship. Austin ranks No. 1.

"As home to the annual South by Southwest Festival, Austin has built a national reputation for innovation and culture, and the 50,000-strong student body of the University of Texas at Austin ensures that the area has an energetic and educated population," says MoneyRates.com.

"According to the U.S. Census Bureau, Austin-Round Rock is the third fastest growing metropolitan area in the nation, and with over a third of its population having a bachelor degree or better, it is also one of the most well-educated places in the country."

Local millennials aren't as affluent as those in other metros, but the Lone Star State's relatively low tax burden makes it a hub for entrepreneurs. In fact, Texas dominated MoneyRates.com's list with more cities in the top 10 than any other state.

Austin is followed closely by Midland (No. 3), the Houston metro area (No. 4), and Odessa (No. 6).