30 best cities for small business - includes related articles - Cover Story

Entrepreneur, Oct, 1996 by Karen Axelton, Janean Chun, Debra Phillips, Cynthia E. Griffin, Heather Page, Lynn Beresford, Holly Celeste Fisk

Despite these advantages, the city faces some growing pains: An unemployment rate of 3.4 percent has created a squeeze on the labor market. Traffic has started to clog up. And housing costs, traditionally affordable, increased 50 percent between 1992 and 1995.

Most residents look forward to a brief period of more moderate growth so they can catch their breath, allow infrastructure issues to catch up to the city's rapid expansion, and continue flourishing in what economists predict to be five to seven years of unabated growth.

RALEIGH, NC

"Downsizing" and "merger" are usually dreaded words, but in the Research Triangle re on, the marriage of pharmaceutical giants Glaxo and Burroughs-Wellcome ignited an entrepreneurial fire that has drawn venture capital to an area previously devoid of this high-level financing.

But its imported capital, aimed at sophisticated entrepreneurial efforts. Others will still find themselves short, although more financial advisors and lawyers are setting up shop to help.

Medical spinoffs are creating a strong clinical research industry. There are also telecommunications spinoffs that supply larger concerns like Northern Telecom, Bell Labs and MCI, or are exploring new areas such as Internet software.

While the region is experiencing typical growth-related Infrastructure problems, there is a willingness by residents and politicians to address issues such as improving roads, transportation and schools via solutions like a $1.8 million bond on the upcoming November ballot.

Overlying everything is a growing awareness of the importance of small business, which has translated into mentoring programs, more incubators, and the realization that recruiting entrepreneurs to start small companies may be more beneficial in the long run than going after major corporations.

GREENSBORO, NC

Looking for a new movie location? Think the Piedmont Triad. The new film school at the University of North Carolina (the nation's first new film school in 20 years) is inspiring the region to position itself as a movie-making center, particularly for those using new media like virtual reality and interactive television.

Although venture capital is not abundant, it's improving, thanks to a new state-appointed venture capital developer working in the states Department of Commerce. There is also a new microenterprise fund that, when leveraged, will seed more than $300,000 in small-business loans.

Growing industries include telecommunications and retail. Supplying the huge furniture manufacturing complex in High Point is an important growth area, and there is also a trend toward exporting, facilitated by a world trade center at the airport.

While a skilled labor shortage continues, officials hope a focus in the community colleges on strong technical training and apprenticeship programs will provide some relief.

LAS VEGAS, NV

Las Vegas is on a roll and shows no signs of slowing down. Buoyed by the twin forces of gaming and tourism, the desert community finds itself awash in small businesses springing up to serve the new casinos and resorts.