Big City Startup vs. Small City Startup

Starting up in a big city differs a lot from starting up in a small city. No matter what business model, there are certain fixed differences when you start a company in either case.

Costs – Big cities tend to have higher costs of living and an entrepreneur will find it more difficult to sustain himself/herself.

Availability of Talent – A startup is as good as it’s team. Finding the right talent is crucial for any startup. Bigger cities tend to have a higher number of better and specialized colleges (though this cannot be generalized) and hence the availability of a good talent pool is higher. Also talent from bigger cities generally avoids settling in smaller cities due to the loss in lifestyle.

Regulation/Support – Bigger cities tend to be some years ahead in development as compared to smaller cities. The regulatory and support systems in bigger cities tends to be stronger for new entrepreneurs.

Market Size– Bigger cities have a bigger population, which implies a bigger target market for the startup.

Competition Levels – Startups in bigger cities tend to have more competition as compared to startups in smaller cities (this can partly be attributed to the bigger market size).