Detroit Named The Hardest City To Start A Business In New Study
A new study has named Detroit, Michigan as the hardest city to start a business. It’s just another example of how it’s Detroit vs Everybody.
For some reason, the city of Detroit has a poor reputation. It seems like we’re always the butt of the joke. It’s happened on Family Guy and other popular memes online. There was even that viral video years ago about how the city of Cleveland is awful, but at least it isn’t Detroit. That video remains stuck in my head. Don’t get me started on comparing Detroit and Cleveland. Regardless, is Detroit really the hardest city to start a business?
Detroit Named The Hardest City To Start A Business
Personally, I’ve always found Detroit to be a supportive city. Our cars? Made in Detroit. Our favorite chips? Made right here in Detroit. Our go-to pizza chains are even based here like Little Caesars, Domino’s, Hungry Howie’s, and Jet’s. Even our favorite pop is made right here in our city. We love supporting local, whether it’s our sports teams, products, or food–Detroit shows up.
However, that doesn’t mean it’s easy to start a business here in the 313. Detroit was named the worst city to start a business by USA TODAY Blueprint. For the study, USA TODAY Blueprint analyzed 8 data points from the 47 most populated cities in America including the number of new businesses, closure rates, percentage of households with self-employed incomes, GDP growth, and more. When all the data was collected, one city was recognized as the worst. Unfortunately, that city was Motown.
According to USA Today Blueprint, Detroit has the 2nd lowest rate of self-employed households with only 9.1%. I think that makes sense because so many people in Detroit work for The Big 3. It’s hard to be an entrepreneur when there are mega-corporations in the auto industry right here. Additionally, USA Today Blueprint says Detroit offers one of the worst success rates for businesses. Their data showed 1,144 more businesses closing than being opened over the course of a year. You wouldn’t believe that if you saw how many successful pizza companies were started in Detroit. Does that go to show Detroit does, indeed, have the best style of pizza in the country? Take that, Chicago and New York. Detroit also received poor scores in GDP growth rate and net job creation rate.
San Jose, California; Boston, Massachusetts; Chicago, Illinois; and New York City, New York joined Detroit in the bottom 5. Meanwhile, Austin, Texas was named the best city in the U.S. to start a business, per USA TODAY Blueprint.