20 Best Cities For Small Business

It's no wonder Detroit continues to be such an economic powerhouse--especially when you consider it's headquarters to Ford, Chrysler and GM. Although these automakers may not be as dominant as they once were, they still provide Detroit with a strong economic base. But the Motor City is also a focal point for small business--interest rates are low nationwide, and Detroit's optimistic economy is on an upswing.

Construction is currently planned on two new professional sports stadiums. Costing close to $505 million, the anticipated undertakings have stimulated job opportunities and, upon completion, are expected to revitalize the downtown area. As in Kansas City, the advent of casino gaming is also having positive fiscal effects; three large casinos are scheduled to be built, which should spawn spin-off businesses.

Although the auto industry drives Detroit's economy, retail and service operations, as well as high-tech firms, are also major players. The city works hard to cultivate entrepreneurship by offering access to free information through its Small Business Development Center, networking opportunities and lending programs. It all adds up to a healthy environment that fosters business development.

On the down side, one of the biggest hurdles challenging the city today is a lack of qualified workers, a trend we're noticing in many of our top cities. Experts also predict that as large numbers of auto workers retire from the Big Three in coming years, entrepreneurs may lose some employees, as these corporations looking to hire offer better wages.

This article was originally published in the October 1997 print edition of Entrepreneur with the headline: 20 Best Cities For Small Business.