Innovation Incubators: City of Chicago Named Illinois’ Most Supportive of Startups, Survey Reveals.

• Poll 3,024 entrepreneurs.
• Peoria + Champaign–Urbana also included.
• Infographic ranking of the 150 best cities to start up a business, based on local government support.

Startups are the heartbeat of the U.S. economy. Many falter, but those that survive often explode into job-creating powerhouses, bolstering both local communities and the national economy. While a founder’s talent is critical, the unsung hero of startup success is often the local government stepping up with game-changing support. From cash infusions to mentorship to cutting red tape, cities across America are rolling out the red carpet for entrepreneurs. Take Austin, Texas: its Austin Economic Development Corporation (AEDC) doles out microgrants up to $40K through Opportunity Austin and slashes licensing timelines by 50% with a Fast Track Permitting program. Or Chattanooga, Tennessee, where the Economic Development Office backs CO.LAB with $50K grants and free coaching, plus throws in six months of free gigabit internet—city-owned and lightning-fast—for qualifying startups.

MarketBeat.com, a financial media company, carried out a poll of 3,024 aspiring entrepreneurs with one simple question:

“If you could launch your startup anywhere, which city would you pick (based solely on local government support)?”

The result: a definitive list of America’s most envied startup-friendly cities, powered by city hall. The top 5 nationally were as follows:

#1 Dallas, Texas
Dallas, in the DFW area, blends corporate strength with startup support via Tech Wildcatters and the DEC network. Local government grants and innovation programs foster growth, connecting founders to mentors and investors. With access to Fortune 500 companies, this ecosystem provides entrepreneurs with resources, industry partnerships, and a vibrant base to launch and scale businesses effectively. DFW Startup Week 2025 is set for August 3–7, 2025, at the SMU Cox School of Business.

#2 Austin,Texas
Austin, dubbed “Silicon Hills,” thrives with accelerators like Capital Factory and Techstars Austin. Texas’s no-income-tax climate and the Texas Enterprise Fund attract startups, while UT’s Austin Technology Incubator and active VC presence bolster support. This robust ecosystem offers entrepreneurs mentorship, funding, and a deep talent pool, making Austin a premier launchpad for tech ventures in a pro-business environment. Austin Tech Week in 2025 is scheduled for October 20–24, 2025. 

#3 Houston, Texas
Houston excels in energy, aerospace, and health tech, ranked #1 in North America for early-stage funding. The Ion, MassChallenge Texas, and Greentown Labs offer accelerators and incubators. City and industry support provide capital, R&D, and expertise, creating a powerhouse ecosystem where entrepreneurs tap specialized resources to grow innovative startups successfully.

#4 Orlando, Florida
Orlando transcends tourism, emerging as a tech startup hub with university and research support. UCF’s Business Incubation Program provides mentorship and space, while innovation districts like Creative Village foster growth. Specialized institutes in aerospace and gaming, plus affordable facilities and starter bootcamps, tap a skilled workforce. This collaborative ecosystem blends R&D partnerships and resources, enabling entrepreneurs to launch software, biotech, and other ventures effectively.

#5 Tampa, Florida
Tampa Bay’s startup scene flourishes with hubs like Embarc Collective and Tampa Bay Wave, offering mentorship, investor ties, and seed funding. Expanding in cybersecurity, healthcare, and logistics, it benefits from Florida’s tax advantages and talent base. Local business leaders and accelerators drive growth while networking events connect founders to resources. Tampa’s rich support network provides the guidance and infrastructure entrepreneurs need to thrive in a dynamic tech ecosystem.

Illinois had 3 cities deemed among the most supportive in the country among startups: 

#20 Chicago
Chicago’s startup ecosystem shines with 1871, a top tech incubator launched in 2012, alongside mHUB for manufacturing and MATTER for health tech. In 2021, these hubs secured a $2.78 million federal grant from the U.S. Economic Development Administration to support startups and small businesses through the Chicago Proactive Response (CPR) initiative. This blend of specialized hubs and government backing connects hundreds of startups to mentorship, funding, and talent, ensuring entrepreneurs have the capital and resources to thrive in a dynamic city.

#103 Peoria
Peoria’s startup scene grows with Distillery Labs, a 67,000 sq. ft. hub funded by a $10 million state grant. Offering coworking, prototyping labs, a commercial kitchen, and classrooms, it fosters inclusivity through workshops and partnerships. Focused on health, agriculture, and transportation tech, Peoria’s public-private support provides entrepreneurs with mentorship, facilities, and resources to launch and scale ventures effectively.

#144 Champaign–Urbana
Champaign–Urbana, home to the University of Illinois, drives tech startups via the 200-acre Research Park and EnterpriseWorks incubator. Supporting nearly 100 ventures with commercialization, coaching, and seed funding, it leverages state and federal grants. This university-led ecosystem, rich with resources and investor networks, empowers entrepreneurs to innovate and succeed in a proven hub of Illinois innovation.

Infographic ranking of the 150 best cities to start up a business, based on local government support

“Across the U.S., cities are stepping up in a big way to fuel the startup boom, and it’s paying off for entrepreneurs and communities alike. From Dallas to Buffalo, local governments are rolling out grants, slashing red tape, and connecting founders with mentors and investors – creating ecosystems where bold ideas can take root and thrive. It’s clear that when city halls get behind startups, they’re not just betting on businesses; they’re building the future of their economies,” says Matt Paulson, Founder of MarketBeat.com.

Methodology: Online panel survey of 3,024 participants based on age, gender, and geography. We used a two-step process to ensure representativeness through stratified sampling and post-stratification weighting. March 2025.