EDITORIAL:  "Get Your Creative Juices Flowing:  My Top 10 Cities to Start an Entrepreneurial Venture"

April 2005

By:  Lee Ann Woods

AngelouEconomics

Webster's New Collegiate Dictionary first entered the word "entrepreneur" in 1933, defining it as: "one who organizes, manages and assumes the risks of a business or enterprise."

The term entrepreneur actually comes from the French word: entrepredre – which means "to undertake."  This word has been around by some accounts since 1852.

A few years before Miriam Webster entered the word into our American dictionaries, my grandfather was an independent businessman.  After working various odd jobs -- some more highly regarded than others -- he decided to take a chance when he identified an opportunity: in this small, growing town (thanks to petrochemicals, oil and gas) there was no hardware/lumber store.   Through his drive and stick-to-it-iv-ness, and the on-going family involvement, that store grew until my dad wanted to retire…70 years after it opened its doors.

I'm proud of that story.  I'm proud of my family – and, hey!  That store put me through school!

Clearly my grandfather wasn't some high-tech guru.  Instead he was the very essence of an entrepreneur – able to identify an opportunity; a risk-taker; creative; with the ability to marshal resources; he also had personal drive, and a desire to create value.

Entrepreneur is now more generally defined as someone who creates a new product, usually further defined as being in technology.  BUT, an entrepreneur can create and market anything from a new beer (Pete's Wicked Ale) to office supplies (Liquid Paper) to a fine eating establishment (Wolfgang Puck's Spago).  For the purposes of generating this "Top 10 Cities for Entrepreneurs' list, the criteria for ranking is based in one of the above listed traits as the primary factor: CREATIVITY.

I have owned a couple of companies along the way, and I do have a music background.  At some point I realized that my 'juices really got flowing' around other creative types.  (Who wants to kick around great ideas with a log, OR the bump on it?!)  So, creative juices are flowing, cue the music, throw in a trip to a couple of cutting-edge galleries for visual inspiration…(my senses are really at work now)…lots of great energy!  It's a great setting for creative thinking.   It's a great setting for creative enterprise.

This is the premise of this "Top 10" list: Creative Environments Welcome and Stimulate Entrepreneurship.  More important to note – where there is creativity, there are: Open Minds, Encouragement of New Ideas, Money (philanthropic and otherwise), and ENERGY!

Not surprisingly, working through the created, "creative" criteria, as cities began to emerge as "centers of creativity," these same cities were also at the top of many business lists: "Hot Cities," "Best Places to Work," "America’s Wealthiest."  Yes.  Indeed there does seem to be a genuine connection.

Think: Music, Art, Museums, Art Schools, Theatre, Culinary Schools, Film…many of the places you just thought of are probably on this list.

And, there's back-up.  Other criteria utilized in creating this ranking included:

Population – minimum one million…there has to be depth to the market for potential consumers/buyers, as well as a pool of suppliers and resources

High-Growth Market – reviewed consumer marketing data to view population growth trends…we want to be in a "happening" market

Small Business Resources – entrepreneurs need help, support, mentoring, money

Universities with Entrepreneurship Programs – largely these programs have been developed in RESPONSE to demand – a market that demands these programs, needs these programs

Median Income and Housing – the livin'-on-the-high-horse-dot-com days are long gone…our entrepreneurs don't have fat bank accounts, and they really are putting all their money into their ideas – so, we need a reasonable cost-of-living market (yes – there went the West Coast!)

All-in-all, these elements, combined with a focus on a CREATIVE environment of art and filled with artists, create an ENERGY and desire for Supporting and Stimulating an Entrepreneurship Culture.

So, Drum Roll Please…..The Top 10 Cities for Entrepreneurs:

Why is Austin, Texas, Ranked #1?

You're not that surprised, are you?  And, yes – we double- and triple-checked.   While there might be a little personal bias, the numbers don't lie.

So, let's take a look at Austin, Texas: "Live Music Capital of the World."  These folks have been crankin' out all styles of music for years.  Everybody from Willie Nelson to ZZ Top has received at least a "bump" in their careers playing Austin.   And, film – it's big business in Austin. South by Southwest (SXSW) is one of the country's largest film AND music festivals, lasting two weeks in length, and garnering national and international attention – stars are "born" at SXSW.  Austin is known as the Third Coast for film – this year’s Hall of Fame awards honored Texas' own Marcia Gay Harden, Dennis Quaid, and Robert Rodriguez, (one of the industry's hottest new filmmakers).

As if that weren't enough, Austin City Limits (ACL) has produced their award-winning show on PBS since 1976, featuring artists like BB King, Leonard Cohen, Mary Chapin Carpenter, and even Ray Charles.  Two years ago, ACL decided a festival of its own was in order, and in 2004 packed in over 75,000 people in a three-day period, in its first year! 

Museums, art – OK, Austin's no NYC…it’s not even Houston, Dallas, or Kansas City – but, it's growing; and, most notably in the number of leading-edge galleries, touted recently by Southwest Art magazine. Austin boasts one of the nation's most respected folk art galleries, in the heart of its very creative SoCo (South Congress) area. 

Austin is 'Foodie' Heaven, with culinary programs "sprouting" up in response.   Austin is home of Whole Foods Market, the first Central Market (by HEB).

Theatre is becoming more a part of the culture, as well – Zachary Scott Theatre Center is the professional theatre, where several playwrights of regional and national acclaim have debuted works.

And, the other stuff:

Population – 1.2 million

High-Growth Market – 3% annual growth rate

Small Business Resources – there are any number from both the public and private sector (individuals and venture capitalists), and because it is the State Capitol, there is a lot of attention given to this area

Universities with Entrepreneurship Programs – the University of Texas boasts one of the strongest MBA programs, as well as Entrepreneurship tracks in the country, it is also home of IC2 one of the most admired University-driven incubators in the country, and there are 4 other universities in the area with business degree programs

Median Income and Housing – there's a reason all those Californians are flocking to Austin – median income: $47,396, median home price: $120,769

 

The rest of the Top 10 list...

The surprises to you may be #7 Nashville and #8 Memphis.   In case you haven't heard, there are an incredible number of creative people (think Country, Gospel and Blues music here) in the State of Tennessee.  Memphis is home to the blues -- Beale Street is still hoppin'.  And, of course Nashville still can claim its Country Music empire – and, there is so much more these days, with all types of music coming out of this city's studios.  In addition, the state is filled with visual arts.  Memphis is home to some of the most noted galleries in the country.  There is a real energy in this state these days.  It is a "hot" market (see February '05 Expansion Management Magazine).  Additionally, these two cities offer a variety of financing programs, well-respected colleges and universities, the state is by some accounts 'leading the pack' in medical research and development, as well as medical services (State Senator Bill Frist has had a helping hand in this phenomena).   Tennessee is an affordable state, with a nice year-round climate; it is complete with people who enjoy outdoor activities.  The Governor is very pro-business; state-led business programs and initiatives reflect this focus.  And, with the "Music Capitol of the World," Elvis and so many other musicians, playwrights, poets, and visual artists carrying the creative banner…well, let's just say these cities are "juiced" about their future, and they are looking for a few good entrepreneurs!

#2 Dallas – there probably doesn't need to be a whole lot written here on this market.  Dallas continues to be a strong, ideas-driven area of the country where (in spite of itself at times) great things just keep happening!  In Dallas, if you don’t have a new idea, you're financing a new idea; or you're the middle-man putting two highly creative types together for the execution of one of their new ideas…it's all about that in Dallas, Texas.  Creativity is a part of one's everyday in Dallas – and, the "creative factor" is high with world-class museums, an internationally regarded symphony, nationally-watched galleries; Dallas is home of the Texas blues phenomenon of the '40's, and the city still cranks out its share of leading musicians (Steve Miller, Boz Skaggs, Dixie Chicks, Erykah Badu, Leann Rhimes).  The North Texas Film Commission boasts any number of productions on-going at any time, and The Studios at Las Colinas play host to much of the area's in-studio work.  The Studios is home to a TV and Film Museum, attracting tourists each year.   FOODIES – well, the statistic still holds true: there are more restaurants per capita in DFW than in NYC.  Dallasites love their food – and, it is absolutely a social occasion.  With great chefs like Dean Fearing, Kent Rathbun and Matt Martinez calling Dallas home, the Culinary Arts are actually competitive in Dallas, Texas. Dallas is a very dynamic, creative, arts-enthralled city.  Dallas can bring out the creative entrepreneur in almost anyone!

#3 Phoenix – arts, arts, arts…this city is teeming with them!  People mistakenly still view Phoenix as a market where any "art" has a cowboy hat stuck on the top of it.  This is very far from reality.   This city has come alive in the last five years with an incredible 'underground' arts scene – First Fridays are not to be missed (one of the galleries was in the back of an 18-wheeler!).  There are over 100 area galleries, and counting – offering everything from museum pieces to American abstract; Southwest contemporary to traditional bronzes; native fiber pieces to glass works.  Western art is represented well – Phoenix is home to The Heard Museum for which people travel the globe to view the huge collection of Native arts and culture.  And, music.  Phoenix has a symphony that is growing in reputation each year.  The city is BIG on jazz. Back in the mid-'70s, Jazz in AZ was formed and has since been at the heart of the evolution and revolution of jazz throughout the area; they produce the Chandler Jazz Fest each year, bringing in internationally-acclaimed jazz artists.

Theatre: multiple venues support various local groups, as well as a semi-professional and a professional corps of actors in the area.  Film, too – Phoenix has one of the most respected film offices in the country; they are hosting their fifth annual Phoenix Film Festival in April. The picturesque nature of the area lends itself to all sorts of film scenes and backdrops, and an energy and inspiration (think: Sedona) that is all about creativity.   Architecture is sacred in Phoenix – it boasts of its connection to Frank Lloyd Wright, with the Taliesin West complex, which Wright called his Winter home – it served as a studio and continues today supporting upcoming architects through its apprentice program and Fellowship.  Many artists of different genres call Phoenix home, including Fleetwood Mac's Stevie Nicks, Alice Cooper, Stephen Baldwin, and Bill Keane (creator of “Family Circus” cartoon) – they all contribute to the growing arts scene throughout the area.  If a creative environment coupled with the meditative desert sounds good – this is the place for you!

#4 Houston - Long known and appreciated for its arts community, Houston is right at the top of the list.  Houston's cosmopolitan make-up equates to an arts community that is incredibly diverse: Asian Arts alongside the Houston Museum of Fine Art, next to the Houston Center for Photography.   And, theatre and music are "king" in Houston – the city brags about its 17-block theatre district.  Houston touts some of the best artistic venues in the country; home to the Internationally acclaimed Houston Symphony, the Houston Grand Opera in its 50th season, the Houston Ballet, and The Alley theatre known for launching careers including that of Patrick Swayze.  Music talent from Houston includes: Sissy Houston and her very (in)famous daughter, Whitney; more current: Destiny’s Child, and favorite son, Clint Black, among many, many others.  The film "scene" is not as strong as that of Austin or Dallas, but this Texas town also brings in its share of film industry dollars.  Houston is home to one of the original Art Institutes, as well.  Houston meets the criteria for this list in all of the other areas, too: cost of living, entrepreneurship programs, and growth market profile.  The Bayou City can definitely brag about its level of commitment and enthusiasm for entrepreneurs – it has the "want to," and the money to make things happen, in a wonderfully creative environment.

#5 Atlanta - In the heart of the South, peach trees are the sub-text for what has become one of the nation's most dynamic and headline-grabbing parts of our country when it comes to business.  Atlanta is consistently at the top of business lists, for getting business "done," including numerous and growing numbers of small business success stories. And, then there's that Creative Energy that abounds.  Atlanta – also affectionately known as "Hot-Lanta," is that and more.  Art schools, museums, a terrific film commission, a diverse music scene…it all culminates in a very creative environment, set in a very diverse and new-ideas-driven community.  Atlanta's Woodruff Arts Center is recognized as one of the top four in the country, the High Museum of Art continues to land high-demand exhibits…from fine to folk to contemporary art, Atlanta has it.  Even the Buckhead area has drawn attention due to its arts scene that has taken a cue from SoHo.  The music in Atlanta spans all genres and continents – it is known for its mark in the Hip Hop scene – Atlanta is home to Sean "P Diddy" Combs, as well as Jermaine Dupri; they have helped "spin" a lot of music out of Atlanta.  Atlanta is also known as a leader in poetry, with literaries emerging from area Poetry Slams.  Atlanta offers a very diverse culture, full of life and energy…full of creativity.  AND, it delivers in business services, funding availability, multiple Universities and their entrepreneurial and business programming, as well as with a cost of living index that fits well into any entrepreneur's pocketbook.  Hot-Lanta, indeed.

#6 Charlotte, #7 Nashville and #8 Memphis (see above), #9 Kansas City, #10 Chicago - Each of these cities presents many of the same elements as do the top five markets – all with their own "flair," of course.  They are all strong cities, and worthy of any entrepreneurs' consideration when looking for a great place to generate and EXECUTE Big Ideas.  Go to any of these cities' websites and check out their Creative Juice.

Just below the "Top 10" radar screen, three others are standing by:

Seattle was oh-so-close – but, the cost of living couldn't compete with the other markets; nor was it as strong in the creative categories.  Boulder was "shy" on depth in all categories – but, offers real strength in overall creative environment.  Tampa (surprised ?) is beginning to generate quite a bit of attention on all fronts, business and the arts – it's certainly worth taking a look.

While "Creative Environment" drives this ranking, affordability was a critical factor, too – not only with regard to the individual and his/her costs, but also with the cost of goods and service providers in mind as these entrepreneurs work to get things started.

Again, the premise is: strong arts scenes and creative places are the best environments for creative ideas and entrepreneurship.  Utilizing the selected criteria and then reviewing the outcome alongside other and varied "best business cities" lists…the symmetry is certainly evident.

So, grab all those sticky notes you have stuffed in that file labeled "Big Ideas," and head on over to one of these towns…they'll help you get YOUR Creative Juices flowing!

NOTE: one other interesting tidbit, and some "food for thought" – with just a couple of exceptions, each of these cities also claims to have the best barbeque in the world…hmmmm….maybe THAT's the "Creative Juice…!"