Washington, DC, is famous for its monuments, its museums
and--let's face it--scandals in the mayor's office. None of
those are reasons why Rebecca Shambaugh, CEO of Shambaugh
Leadership Group, located her 30-person consulting company in
nearby McLean, Virginia.
"This area has access to multiple businesses: defense,
government, nonprofit," says the 46-year-old entrepreneur.
"It's also an extraordinary place for technology. And,
quite frankly, there's a lot of power here. So you attract a
lot of people who are very accomplished and
goal-oriented."
Among the most accomplished of the area's residents are its
entrepreneurs. Strong showings in three out of four categories
allowed the DC area--which includes parts of Maryland, Virginia and
West Virginia--to take top honors in D&B and
Entrepreneur's 9th annual ranking of the best U.S.
cities for entrepreneurship.
Content Continues Below
Shambaugh isn't surprised. "We've seen
extraordinary growth," she says of the region; her own firm
has expanded employment by 25 percent in the past year.
Michael Stevens, president of the DC Marketing Center, an
economic development arm of the DC Chamber of Commerce, also
professes lack of amazement. "Especially since 9/11, it's
the most dynamic market in the country," says Stevens, who
tracks and provides information for businesses expanding or
relocating to the district. "We're the only large market
that's still experiencing job growth."
Washington's job growth rating of 86 out of 100 was a key
factor in the area's jumping three places from 2001's
ranking, according to Nipa Basu, director of sales and marketing
analytics for D&B in Murray Hill, New Jersey, and leader of the
data collection and analysis effort. "Also, the risk score [of
91] is quite good," added Basu. The area's highest score,
however, is in small-business growth, where Washington, DC,
achieved a 94.
Looking at regions, large Sun Belt cities dominated the highest
rankings, with Florida and Texas accounting for five of the top 10,
Basu notes. Texas could boast three cities: Dallas at No. 2, Fort
Worth-Arlington tied for No. 5 and Houston at No. 8. Conspicuously
absent from the top was once--dominant California, now with just
Sacramento (tied for 11th) and San Jose (tied for 19th) in the top
20.
"This year's surprise was New Jersey," says Basu.
Along with Middlesex-Somerset-Hunterdon, which vaulted from 28th to
fourth on the strength of a very balanced, moderately
pro-entrepreneur environment with no obvious weaknesses, the
Monmouth-Ocean region climbed from 33rd to ninth. Stability,
however, was a general theme. Six of the top 10 cities were also in
the top 10 last year, and Dallas, which led all cities in 2001,
slipped only to second.
Many forces and factors affect a city's friendliness to
entrepreneurs--DC marketer Stevens contends that the city's
museums and monuments play a role in attracting businesses as well
as tourists. Other attractions are increased government spending
and growth in professional services such as lawyers and lobbyists
seeking access to Congress and the White House. One negative: an
increase in the cost of doing business, especially for office space
suitable for entrepreneurs, he adds.
For those who can pay the freight, however, Washington, DC,
could be on a long-term roll as an entrepreneurial place to be. The
city ranked fourth on our list last year, third the year before
that and may well be in or near the lead for many years. The key,
says Stevens, is the area's combination of a rapidly expanding
local economy and the stability of being the nation's capital.
"They're projecting another million people in this region
by 2020," he says, "so [expect] big population growth and
steady opportunities with the federal government."
| Best Cities |
| To find
out how other cities across the nation fared in this year's
listing, take
a closer look at our 9th annual listing of the Best
Cities for Entrepreneurs or the charts in our "It
Figures" column. |
Contact Sources