Starting your own business is a great challenge. There are so many factors that contribute to the success of a business and its survival. In reality, around 60% of businesses fail within three years of operation. This makes every decision crucial when starting a business.
Our Startup Cities campaign of 2025 is here to help you decide which Aussie city is the best fit for your business venture. Having a location that is conducive to the growth of your business will give you the best chance of success.
Startup Cities Criteria
When looking into the best cities to start a business, our research analysed a number of factors:
- Talent Pool: Access to a specialised and trained labour force will give your business a competitive edge.
- Business Landscape: A business environment that offers access to productivity, funding, grants, and location gives startups greater chances to survive.
- Internet Speed: Accounting for performance, having access to adequate internet based on latency, upload and download speed, so that any startup can perform immediately.
- Cost of Living: Not only does a business need help to survive, but so do the people around it, meaning a community can thrive as well.
Top 10 Startup Cities in Australia
In 2025, the best places to start a business, by weighing up our criteria, include all the mainland state capitals and some rural cities.
From our previous campaign for 2024, Perth moved 19 places to rank as the number 1 city to start a business. This shows that business in Australia is constantly changing. Toowoomba, Mackay and Ballarat ranking in the top 10 also show that you don’t need to start a city based on the coast, and that rural areas can be just as conducive to success.
Best Cities to Start a Business by State
While the top 10 cities show the best of the best, that doesn’t mean you are restricted by geography; there are options if location close to where you live is important.
The Best and The Worst City by Factor
Unfortunately, some places don’t offer the best circumstances for startup businesses.
If you are considering a city or town that is placed in a low-scoring category, it may be prudent to rethink your options. This doesn’t mean that you can’t have a successful business in these locations. There are businesses in these cities and towns that succeed due to various circumstances and factors not included in our report.
Best Cities to Start a Business by Factor
Not every city excels in all factors, but rather in specific categories.
Not all businesses are equal, which means that not all factors are equally important to specific industries. Say that you are looking to start a consulting business, and access to an educated workforce is more important than the cost of living. Canberra could be the choice for you due to its accessibility to a highly educated talent pool. By narrowing down on specific factors that are important to your business idea, you can find the best city for you outside of the top 10.
Bottom Line
Our Startup Cities report shows that opportunities to pursue a new business aren’t confined to Australia’s capital cities. There are worthwhile cities and towns in every state. The report also shows that a lot can change in just one year, as places like Bendigo and Warrnambool declined in certain areas, affecting their overall score and dropping in rankings. To make sure you start your business on the right foot, make sure you have the right accounting and payroll tools to help you succeed.
