Memphis Rising: Why the City is a Hotbed for Entrepreneurs
Memphis, a city renowned for its rich cultural heritage and soulful vibes, is fast emerging as a vibrant hub for entrepreneurs. With a focus on innovation and support for high-growth entrepreneurship, Memphis startups have found a fertile ground for business ventures.
The Thriving Ecosystem of Memphis Entrepreneurship
Memphis isn't just about blues and BBQ; it's rapidly becoming a beacon for entrepreneurial minds. The city's entrepreneurial ecosystem is a testament to its commitment to growth and innovation. Epicenter, the heart of this ecosystem, has engaged with 682 entrepreneurs in 2021 alone, with a notable 72% being founders of color, showcasing diversity and inclusivity at its core. The lack of startup saturation in Memphis makes it a better place for social entrepreneurs to start than major hubs like San Francisco and New York and builds a mutually supportive network of community entrepreneurs and founders.
Key Industries Spearheading Memphis Economic Growth
The entrepreneurial landscape in Memphis is as varied as it is dynamic. The city is a stronghold in several key industries:
Medical Devices: With programs like The ZeroTo510 Medical Device Accelerator, entrepreneurs in this sector receive unparalleled support, especially in complex areas like regulatory compliance and product commercialization. Medical device regulations are complex. Memphis entrepreneurs can tap expert mentors to help with customer discovery, product development, reimbursement, commercialization, compliance, regulatory, manufacturing, packaging, and distribution. Founders can even create prototypes and run tests with the best in the business. Memphis's reputation in this industry is bolstered by giants like Smith & Nephew and Medtronic.
Logistics & Supply Chain: Leveraging its strategic location, Memphis excels in logistics, evidenced by major players like FedEx, IMCG, and Old Dominion Freight. This industry benefits significantly from Memphis's unique transport network, as Memphis is a place where planes, trains, trucks, and barges all intersect. There are five class 1 railroads in Memphis and the city boasts more than 119,000 transportation/material moving occupations. The reputation of the city as a transportation hub is bolstered by multiple logistics-focused conferences, associations, and consortiums that are pushing the industry forward like the Healthcare Packaging Consortium at Christian Brothers University and The Memphis World Trade Club Logistics Summit. Active participation can be a major competitive advantage for Memphis entrepreneurs.
Agribusiness & AgTech: Memphis has an incredible array of commodity crops that are grown within 100 miles of its downtown and an international airport, and Memphis’s unique central location gets you in the fields and face-to-face with farmers in less than 30 minutes. The AgLaunch Farmer Network is a group of early adopter growers looking for new business opportunities through incubating agtech innovations. This network supports agtech startups by providing them with access to early adopter growers and valuable business opportunities.
Cost of Living: A Longer Runway for Memphis Entrepreneurs
Entrepreneurship in Memphis comes with a significant perk: affordability. The cost of living and conducting business here is considerably lower than in larger markets. This economic advantage, coupled with a supportive network of diverse founders, creates an ideal environment for startups to flourish.
With a cost of living about 11% lower than the national average, Memphis presents a welcoming environment for new businesses and their employees. Housing costs are a notable highlight, being approximately 20% below the national average [Source]. This affordability extends to operational costs for businesses, with office space rentals and other overheads markedly lower than in larger cities. For instance, the average office rental cost in Memphis hovers around $20 per square foot per year, compared to the higher rates of major cities like New York or San Francisco, where prices start around $60 per square foot.
The lower cost of living also translates to more affordable labor costs. Businesses in Memphis can attract talent without the hefty salaries required in cities with higher living costs. This is a significant factor for startups that need to optimize their budget for growth and development.
Tennessee's lack of state income tax is a major financial boon for both business owners and employees. Moreover, Memphis offers various tax incentives for businesses, enhancing its attractiveness as a startup location. These fiscal advantages contribute to a more sustainable financial model for emerging businesses.
Memphis vs New York Cost of Living
68% Lower Cost of Living
$4,309 Rent Savings
87% Lower Median House Prices
19 Minute Faster Average Commute
Memphis vs San Francisco Cost of Living
59% Lower Cost of Living
$3,335 Rent Savings
81% Lower Median House Prices
22 Minute Faster Average Commute
Memphis vs Nashville Cost of Living
25% Lower Cost of Living
$422 Rent Savings
18% Lower Median House Prices
10 Minute Faster Average Commute
Memphis vs Dallas Cost of Living
27% Lower Cost of Living
$814 Rent Savings
52% Lower Median House Prices
10 Minute Faster Average Commute
Memphis vs Atlanta Cost of Living
22% Lower Cost of Living
$422 Rent Savings
37% Lower Median House Prices
10 Minute Faster Average Commute
The Memphis Startup Ecosystem Advantage
Memphis offers unique opportunities for entrepreneurs compared to other cities, largely due to its thriving ecosystem of business support from both private and public organizations. This ecosystem is not only supportive but actively engaged in leveraging entrepreneurship for economic impact. Additionally, Memphis's status as a global logistics hub and its collaborative corporate community provide substantial advantages. These include easier access to corporate buyers for early-stage startups and strategic benefits from the city's comprehensive transportation network, facilitating enterprise contracts and market expansion.
Epicenter – The Heart of Memphis's Startup Revolution
Memphis is emerging as a powerhouse for startups, marked by its affordability, diverse entrepreneurial network, and industry-specific opportunities. As Epicenter continues to play a pivotal role in this ecosystem, it stands as a crucial resource for local and national entrepreneurs alike. With its unique blend of cultural richness and business acumen, Memphis is not just a city on the rise; it's a city where the future of entrepreneurship is being actively shaped.