RALEIGH – A booming startup economy and a strong “survival rate” of new businesses  plus other factors make Raleigh the 17th best city for entrepreneurs among the nation’s 50th largest metros, according to a new study from commercial real estate and coworking space listings site CommercialCafe.

Citing a variety of statistical data, CommercialCafe says “it is not surprising to see Raleigh among the 20 best” in its “Top 20 Best US Cities for Startups.”

Since the Durham-Chapel Hill metro is not among the largest 50 metro statistical areas, it wasn’t considered for the study.

Charlotte came in sixth with Atlanta in the eighth spot.

Raleigh hot spot

“Entrepreneurial activity … is booming,” writes Ioana Ginsac.

“Census data showed that there was a 3 percent increase in the number of non-employer tech firms, placing Raleigh fifth.

CommercialCafe graphic

“Nearly 15 percent of all Raleigh businesses with up to four employees in 2018 were in operation for less than a year – 11th for startup density – and an estimated 64.6 percent were active past their first year, landing Raleigh in fourth place for startup survival rate.”

The study is the latest among several that have cited Raleigh as a hub for technology and startups.

Austin took the top place with Washington, D.C. and Seattle following in the top three spots.

Study: Raleigh No. 3 city for tech workers, Chapel Hill 30, Durham 43; average pay: $91,000

While a 19th-place ranking in tech employment growth (5 percent growth in jobs) hurt the overall ranking, other factors gave the City of Oaks a boost.

“The resources of the Triangle Region have been a boon for Raleigh’s startup scene,” Ginsac explains.

Charlotte is nation’s No. 6 city for startups, says new study

Other key points:

  • “The City of Oaks came in sixth for housing affordability, with a rent-to-income ratio low enough to offset the city’s ranking of 14th for cowork cost.
  • “Nearly 7 percent of residents aged 25 to 39 held a bachelor’s degree or higher in science and engineering in 2017.
  • “The number of Raleighites aged 25 or over holding such higher-education degrees, increased 10.7 percent over five years.
  • “The city ranked sixth for tech ed and for tech ed growth.”

Durham No. 7, Raleigh No. 8, Charlotte No. 6 on best cities to start a business list

How rankings were compiled

Here’s how CommercialCafe ranked the cities:

  • Nonemployer growth (max 10 points)
  • Startup survival rate (max 5 points)
  • Startup density (max 5 points)
  • Startup growth rate (max 5 points)
  • Kickstarter success (max 10 points)
  • Tech education (max 10 points)
  • Tech ed growth (max 5 points)
  • Tech employment growth (max 10 points)
  • Wage growth (max 5 points)
  • Rent/income ratio (max 10 points)
  • Coworking cost (max 10 points)
  • Millennials percentage (max 10 points)
  • Millennial population growth (max 5 points)

Read the full study online.