According to a recent study, regional cities in Victoria have emerged as among the top choices for starting a business.
Recent research conducted by software firm Reckon has provided insightful data regarding the best and worst cities across Australia for entrepreneurs looking to start a business. This study, which encompassed an in-depth analysis of various metrics, has shed light on the cities that offer conducive environments for business growth and those that present more challenges.
Geelong, a regional city in Victoria, emerged as the top-ranked city for launching a business, according to Reckon’s comprehensive analysis. This ranking was closely followed by Ballarat and Melbourne, showcasing Victoria’s strong presence in the entrepreneurial landscape.
Reckon’s study employed a meticulous approach, evaluating 18 distinct data points across the 50 largest cities in Australia. These data points covered a wide range of factors crucial for business success, including average weekly incomes, cost of living, business survival rates, the presence of a young and skilled workforce, educational attainment levels, and the growth trajectory of businesses within these cities.
The findings underscored the significant advantage that Victorian cities enjoy in terms of fostering a conducive environment for startups and small businesses. With six of the top 10 spots in the ranking being occupied by cities from Victoria, it’s evident that the region offers a favorable ecosystem for entrepreneurial ventures.
Geelong’s impressive performance can be attributed to several factors, including its robust talent pool and notably faster internet speeds compared to cities in other states. These factors play a crucial role in enabling businesses to thrive and innovate in a digital-centric landscape.
While Sydney, as the largest city in New South Wales, secured the highest position among cities in the state, surpassing locations like Dubbo and Wagga Wagga, its overall ranking was modest, landing at 21st place in the national ranking. This can be attributed to the juxtaposition of its high-quality talent pool with the relatively higher cost of living, which affects its competitiveness among capital cities.
Among the capital cities, Melbourne and Brisbane stood out as the only ones to break into the top 10 list, showcasing their attractiveness for entrepreneurial endeavors. On the other hand, Canberra was rated as the least favorable capital city for starting a business, primarily due to its exceptionally low score in terms of living costs, which presents a significant barrier for startups.
Reckon’s CEO, Sam Albert, emphasized the importance of choosing locations that offer a harmonious blend of favorable business conditions. While major cities like Sydney hold allure for businesses, the elevated cost of living could pose significant challenges, hindering profitability and growth potential.
Among the 50 largest cities analyzed in the study, Nowra in New South Wales emerged as the least favorable location to initiate a business venture. Despite not scoring the lowest in any single factor, Nowra’s overall scores were notably lower compared to its counterparts. Factors such as a low talent pool, with only a small percentage of residents holding bachelor’s degrees or higher qualifications, and a lower labor force participation rate contributed to its unfavorable ranking.
In conclusion, Reckon’s comprehensive study provides valuable insights for entrepreneurs and businesses looking to establish themselves in Australia. By understanding the strengths and weaknesses of different cities, entrepreneurs can make informed decisions to navigate the complex landscape of starting and growing a successful business.