Salt Lake City has the youngest entrepreneurs among the nation’s 50 largest cities, according to a new study from online lender LendingTree. With an average age at their companies’ origin of 37.81, Salt Lake City joins Buffalo, New York; New Orleans; and Oklahoma City with those who founded their businesses before their 38th birthday.
The study compared ages of business founders on their companies’ dates of origination in the 50 largest U.S. cities using data from business owners seeking funding. Average founders’ ages when starting their business ranged from 37 to 42 years old. “This five-year gap in average ages might seem small, but it can represent many factors that work for — or against — entrepreneurs in each city,” LendingTree said.
Gen Xers started nearly 42 percent of new businesses founded in the past five years, the study said, followed by millennials who founded almost 38 percent. Louisville, Kentucky, had the highest proportion of millennial founders, at 44.8 percent.
The cities with the youngest entrepreneurs are likely to have some of the lowest barriers to enter entrepreneurship, according to the report. A closer look reveals that booming local economies, along with low local costs and taxes, may be fueling startup growth. These cities also have strong support systems in place to help founders and their startups succeed, from business incubators and accelerators to networking events.
“The youngest business founders in the country can be found in Salt Lake City, Utah,” the report said. “Entrepreneurs here achieve their dreams of starting a business at just 37.8 years old. The area known as ‘Silicon Slopes’ encompasses the Salt Lake City metropolitan area and nearby cities; it is home to billion-dollar tech companies such as Overstock.com, Pluralsight and Qualtrics.”
“These big players have helped establish a steady, growing economy in Salt Lake City and throughout Utah. The area also has an established (and growing) pool of qualified talent. Combined with the relatively low cost of living, entrepreneurs in Utah have few obstacles — and plenty of opportunities,” LendingTree said.