Flagstaff, Yuma rank among nation’s ‘hidden gems’ for startups
A pair of Arizona towns have been registered as “hidden gem” cities for entrepreneurs looking to launch companies away from the usual national hot spots — with one landing at No. 2 among the nation’s under-the-radar startup destinations.
Flagstaff took second place and Yuma ranked No. 37 on Wall Street information site MarketBeat.com’s list of America’s Top 100 Hidden Gem Cities for Startups, which looked at smaller cities across the nation that offer advantages such as supportive business environments and costs of living that are lower than well-known places like Silicon Valley, New York City and Austin.
Northern Arizona University brings a constant influx of talent and research opportunities to Flagstaff, creating a thriving hub, MarketBeat’s report said.
“At the heart of this ecosystem lies the Moonshot incubator, empowering new ventures with essential resources, guidance, and funding connections,” the report said. “Entrepreneurs find themselves drawn to Flagstaff’s stunning natural setting and business-friendly atmosphere, making it an unexpected hotspot for innovation.”
The Moonshot nonprofit organization in Flagstaff describes its motivation as making sure entrepreneurs have the same resources as those in major cities. Its mission is helping experts bring products and services to market and helping cities in rural Arizona and beyond develop entrepreneurial ecosystems.
Yuma: Ripe for logistics, agriculture startups
Further down the list was Yuma, which MarketBeat described as being strategically located near the California and Mexico borders. The western Arizona city is a great place for agriculture and logistics startups in particular, the report said, adding that the Yuma Center of Excellence for Desert Agriculture is a key asset for entrepreneurs.
“Yuma’s unique geographic advantages, combined with a supportive community and business-friendly environment, make it a promising location for innovative startups,” the report said.
The only city ranked ahead of Flagstaff was No. 1 Sebring, a central Florida town far from the state’s urban centers. Rounding out the top five cities are Monroe, Louisiana; Scranton, Pennsylvania; and Round Rock, Texas, just north of Austin. Most of the cities on the list were on the West Coast and in the Southwest, MarketBeat said.
The analysis found that many of the cities on its list were in regions known for having strong educational institutions, lower costs of living and supportive local governments. Economic diversity and high quality of life were also key elements of hidden gem cities.
“As the startup landscape evolves, it’s essential for entrepreneurs to consider diverse locations that offer unique advantages,” said Matt Paulson, founder of MarketBeat.com, in a statement. “Our survey highlights cities that not only provide cost-effective solutions but also foster supportive environments for innovation and growth. These hidden gems are proving that you don’t need to be in a traditional startup hub to achieve success.”
To come up with its list, MarketBeat surveyed 3,000 business executives online in June and used what it described as a two-step process to ensure representativeness through stratified sampling and weighting. Internal data sources were used to obtain population data sets.