The Startup & SME Friendliness Index: The Best Cities for Entrepreneurs 2026

There are an estimated 665 million entrepreneurs worldwide [1] and the only constant that unites every single one of them is; change.

In recent years - and especially since the Covid-19 pandemic in 2020 - businesses are launching without the weight of traditional offices. This shift has created a new generation of entrepreneurs; founders who can choose where their business calls home and give it the environment it needs to thrive with a balanced quality of living for themselves.

Remote work and virtual offices are increasingly more common with virtual office solutions that let you plant a flag in major global hubs like Miami or London with ease, so that you can choose the city that suits your business needs best. If you pick the wrong city, there’s a risk you’ll be limiting growth.

So, where do you start?

Hoxton Mix analysed cities across factors including tax rates, connectivity, cost of living, business formation and wealth concentration to identify the best global hubs for founders:

Overall, Abu Dhabi (score: 85.45) is the best place for entrepreneurs to live.
The emirate is followed closely by Dubai (score: 81.60) and Doha (score: 76.05) due to low personal, corporate and capital gains tax.
Atlanta (score: 73.58) ranks the best U.S. city for entrepreneurs, with Miami (score: 73.39) and Denver (score: 71.48) second and third place.
Eastern European cities dominate the European rankings. Bucharest (score: 68.83) Budapest (score: 68.15) and Warsaw (score: 67.31) are crowned the top three.
United Kingdom performs poorly with London (#69 - score: 60.71), Manchester (#71 - score: 60.55) and Birmingham (#75 - score: 59.67) among the bottom 25% globally.

Abu Dhabi is the best place for Entrepreneurs & Start Up Friendliness Globally

Our new study reveals that Abu Dhabi is the best place for entrepreneurs to live in 2026 with an overall index score of 85.45 out of 100. The city has established itself as one of the fastest-growing emerging startup ecosystems in the Middle East and North Africa (MENA), driven by heavy investment in AI technology and a supportive regulatory environment.

The Emirate takes the crown for the fastest and most reliable connectivity speeds with the median mobile speed is 835.6 Mbps and median broadband speed is 420.3Mbps making the digital nomad lifestyle easier than ever if you’re based there. On top of that, the city boasts low Corporate (9%), Capital Gains (9%) and Personal Income Tax (0%) rates on top of a 5% VAT Rate.

Top 10 cities for entrepreneurs to live in 2026

Middle Eastern cities dominate the top three; Dubai (score: 81.60) takes second place in the global ranking and Doha (score: 76.05) sits in third position.

Dubai’s Economic Agenda - D33 - is to double its economy’s size by 2033 [2] and therefore the city has seen massive growth in SMEs, startups and foreign investment. It has an impressive average monthly salary of £3,024.20 per person after tax promoting one of the ‘best quality of life’ scores in the report (179.69).

Over 200,000 new residents are moving to Dubai to make the most of the investment tax benefits and high safety standards [3]. In Doha, Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani [4], announced a 10-year residency program targeted at entrepreneurs and executives to promote stable re-location of top talent who can benefit from the low tax rates sitting at just 10%.

In positions four to 10 of the global ranking study, American cities such as Atlanta (#4 - score: 73.58), Miami (#5 - score: 73.39) and Denver (#6 - score: 71.48) represent the best cities for entrepreneurs to live with high average monthly income above £3,000 per month after tax and an average of 242 new business registrations per 10,000 residents. The three cities fall behind on connectivity with lower median mobile and broadband speeds compared to the Middle East.

Unlike top coastal technology hubs like San Francisco and New York City - who suffer from extremely high costs - the U.S. cities ranked from seven to 10 have the perfect mix of workforce and talent, desirable lifestyle conditions and tax and cost advantages. Orlando (#7 - score: 71.46), Austin (#8 - score: 71.29), Dallas (#9 - score 71.01) and Las Vegas (#10 - score: 69.88) take the remaining top spots for the best cities for start up friendliness and entrepreneurs to live.

Best cities in the U.S. for entrepreneurs to live in

According to the Small Business Administration there are 36 million small businesses in the U.S. [5]. For entrepreneurs considering relocation, the U.S. stands out for offering the most choices across the country, with 20 cities included in the report and 18 sitting within the top 30 worldwide. Remember, you’ll need an ESTA to visit the U.S. allowing up to 90 days of travel and with strong median internet speeds of 305 Mbps, it won’t be hard to keep connected to friends and family back home.

Atlanta is the best city in the U.S. for Entrepreneurs

Atlanta ranked first in the United States and fifth globally, achieving an overall score of 73.94 and this strong U.S city performance is down to two key indicators.

The city records 681.88 millionaires per 10,000 people meaning that 6.8% of the population are millionaires. This reflects an exceptionally high concentration of private wealth, founders and potential angel investors. This high level of wealth density typically aligns with more mature business networks too - which is a foundational pillar of an entrepreneurial ecosystem.

Atlanta also reports 223.05 new business registrations per 10,000 people; again reinforcing that there’s a well established entrepreneurial culture within the city. No doubt this has influenced the city’s average monthly net income after tax (£3,802.44) which is one of the highest in the index.

Miami closely follows with an overall score of 73.39 in our study. The city surpasses Atlanta in wealth density, with 762 millionaires per 10,000 people and in new business formation, registering a grand total of 266.48 new businesses per 10,000 people. These figures prove that the city is a highly dynamic environment for startups with substantial access to capital and entrepreneurial networks.

However, Miami’s average monthly net income after taxes per person is lower (£3,059), and the cost of living index sits at 76.4 which will have an influence over household purchasing power and operational costs for new ventures.

In third place for the U.S cities, Denver has a score of 71.48 proving it’s one of the best cities in the country combining connectivity infrastructure, lifestyle advantages and financial resourcing creating a brilliant environment for entrepreneurs to kick start their early-stage business ventures.

The best cities in Europe for entrepreneurs to live in

Dubbed the 'Little Paris of the East', Bucharest, ranks first in Europe with an overall score of 68.83. Following closely behind is Budapest (score: 61.15), Warsaw (score: 67.31), and Krakow (score: 66.79) taking fourth place as Eastern European cities dominate the ranking.

The city’s performance in the report comes down to three key factors; cost efficiency, digital infrastructure and tax competitiveness. Bucharest boasts a low cost of living at 32.6, allowing both entrepreneurs to maximise disposable income and make the most of the below average corporate tax rate of 16% - lower than the likes of London - which enhances the city’s attractiveness for startups.

The best cities in Europe for entrepreneurs to live in

In the study, Budapest achieved a score of 68.15 coming second in Europe, as it combines a slightly higher cost of living index (38.5) with better connectivity (254 Mbps broadband and 117 Mbps mobile). Both cities benefit from well-educated talent pools from universities such as The University of Bucharest [6] and Budapest University of Technology and Economics [7].

The top four European cities being located in Eastern Europe reflects a broader regional trend and shift in entrepreneurial geography in Europe, where cost efficiency, connectivity, and business-friendly policy increasingly define the most attractive locations for start up making them great options for entrepreneurs to live. Western European hubs such as London and Paris simply cannot compete with these cities with some metrics in our study such as low cost of living.

Why do UK cities rank so poorly in the study?

The largest cities in the UK ranked in the lowest 25% of the index with London in 69th place (score: 60.71), Manchester in 71st (score: 60.55) and Birmingham in 75th (score: 59.67). The report reveals that UK cities, despite global prestige, offer a less balanced start-up ecosystem for entrepreneurs compared to both Middle Eastern and U.S. cities. The low performance directly ties to higher living costs, with heavier tax and regulatory burdens making the cities less attractive to early-stage investors than ever.

How Hoxton Mix is supporting Entrepreneurs across the globe

The Start-up & SME Friendliness Index: Best Cities for Entrepreneurs highlights how location can significantly influence early-stage business success, revealing some of the best cities around the world for entrepreneurs to live as a result.

It’s no surprise that Middle Eastern cities such as Abu Dhabi, Dubai and Doha lead the ranking globally - they boast attractive benefits for founders and new businesses such as low personal and capital gains taxes. The cities have robust infrastructures including high-speed broadband and mobile connectivity and good quality of life scores providing the perfect ecosystem for start-ups and entrepreneurs to thrive.

The findings show that thriving startup ecosystems rely on more than funding alone. Infrastructure, affordability and quality of life all play a major role in where entrepreneurs choose to base themselves. No doubt, the sunshine here is helping too!

This is where solutions like Hoxton Mix play a crucial role providing a virtual address, a business mail forwarding address in London and WhatsApp Business numbers removing administrative pain points so that entrepreneurs all over the world can focus on what matters most; growing their businesses

Methodology

This study was conducted to identify and rank global cities based on economic strength, business opportunity, and overall quality of life. The methodology combines multiple socioeconomic and business-related indicators to produce a balanced comparative index.

All data was collected during the week commencing 9 February 2026 from publicly available and reputable international data sources as seen within the document here.