What are the best U.S. cities for young entrepreneurs? According to a recent report by personal finance startup NerdWallet published a report that found among the best cities for young entrepreneurs in the nation Austin, Texas, ranked first. In determining their rankings, analysts crunched Census, Small Business Administration, and Bureau of Labor Statistics data on 181 metros in the country.

Here’s a look at key findings:

• Follow the money.

  For small-business loan dollars received per 100,000 residents, Salt Lake City ranks second nationally, and Austin, Texas, was fifth. These small business loans matter, as Austin and Salt Lake City rank first and third, respectively, as the best cities in the nation for young entrepreneurs.

• Education is key.

  Entrepreneurs can look to places like Boston and Madison, Wisconsin, for some of the most highly educated populations in the country in order to build a skilled workforce.

• Low cost of living, higher chance for success.

  Three of the top 10 cities (Austin, Salt Lake City and Midland, Texas) offer costs of living below the national average. By reducing living and office space costs, entrepreneurs have more cash to invest in their growing businesses.

Best U.S. Cities for Young Entrepreneurs

1. Austin-Round Rock, Texas

Percent of population ages 25-34: 17.5% (rank: No. 1)

SBA loans per 100,000 residents: $17,692,769 (rank: No. 5)

2. San Francisco-Oakland-Hayward, California

Median earnings: $61,810 (rank: No. 2)

Percent of residents with bachelor’s degree or higher: 45.9% (rank: No. 4)

3. Salt Lake City, Utah

SBA loans per 100,000 residents: $21,590,164 (rank: No. 2)

Percent of population ages 25-34: 16.3% (rank: No. 6)

4. Denver-Aurora-Lakewood, Colorado

SBA loans per 100,000 residents: $14,648,482 (rank: No. 13)

Percent of residents with bachelor’s degree or higher: 40.8% (rank: No. 13)

5. Minneapolis-St.Paul-Bloomington, Minnesota and Wisconsin

SBA loans per 100,000 residents: $15,957,600 (rank: No. 7)

Unemployment rate as of September 2015: 3.1% (rank: No. 10)

6. Seattle-Tacoma-Bellevue, Washington

Median earnings: $55,123 (rank: No. 6)

Percent of population ages 25-34: 16.0% (rank: No. 11)

7. Madison, Wisconsin

Unemployment rate as of September 2015: 2.7% (rank: No. 6)

Percent of residents with bachelor’s degree or higher: 44.7% (rank: No. 8)

8. Midland, Texas

Percent of population ages 25-34: 16.9% (rank: No. 3)

Small businesses per 100 residents: 2.90 (rank: No. 5)

9. Boston-Cambridge-Newton, Massachusetts and New Hampshire

Median earnings: $60,168 (rank: No. 3)

Percent of residents with bachelor’s degree or higher: 45.2% (rank: No. 6)

10. Fargo, North Dakota

Unemployment rate as of September 2015: 2.1% (rank: No. 2)

Percent of population ages 25-34: 16.3% (rank: No. 6)

Read the full report here.

© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.