23 Reasons to Start a Business in Baltimore

Baltimore wants your business. Although not as flashy as New York nor as much of a magnet for tech entrepreneurs as Silicon Valley, Baltimore is a fantastic spot to set up shop - a city where you can get your company going while doing it affordably.

1. It’s in a prime state for new businesses

Baltimore harbour © davies (CC BY-SA 2.0) via Flickr

Maryland is one of the top states in terms of its potential for economic growth. It took the fifth-place spot on the 2014 New Economy Index, which measures each state’s long-term financial outlook.

2. Tourists bring in big bucks

Tourism is a major feature of Baltimore’s economy, bringing in about $4 billion in revenue annually. Roughly 20 million visitors pass through the city each year, so you’ve got plenty of opportunities to cash in on the tourist trade.

3. Creative types can prosper here

Baltimore is a great pick if you’ve got a business in the creative sector. It ranks 17th in terms of how many creative professionals have set up shop here, and there are three designated districts for flourishing arts-based businesses.

4. It’s a haven for tech startups

It seems like everyone is starting a tech company these days, but they’re not all doing it in Silicon Valley. Thanks to its startup incubator program, Baltimore is seeing a spike in the number of tech companies that open up their doors here.

5. And biomedical companies

Baltimore is home to Johns Hopkins University, one of the most prestigious research schools in the country. In an effort to advance the fields of medicine and public health, the university developed the FastForward accelerator program for new ventures in these areas.

6. Incentives for retail and commercial businesses

The Main Streets program is a large-scale attempt to bring back some of the small-town, mom-and-pop feel to Baltimore’s neighborhoods. The program offers tax credits and other forms of financial assistance to new and existing businesses operating in one of 9 distinct districts.

7. It’s all about location

Baltimore is relatively close to Washington, D.C., and it’s just a few hours from Philadelphia and New York. With so many federal agencies and finance companies in proximity, businesses here are in a prime position to expand their client base.

8. It’s cheaper to live here

If you’re bootstrapping a business venture out of your own pocket, cutting your personal expenses to the bone is a must, and Baltimore is less expensive than other large cities. Housing costs in New York City, for example, are more than 200% higher by comparison.

9. Residents are taking home decent paychecks

You can’t have a successful business if your customers can’t afford what you’re selling. The median household income for the Baltimore metro area is $68,455 which is promising if you’re trying to attract people with money to spend.

10. Minority entrepreneurs have an opportunity to thrive

Baltimore earned top marks from Forbes, ranking as the second-best city for minority-owned businesses. Their study noted that it’s particularly popular among Asian entrepreneurs, who own 8.4% of the city’s small businesses.

11. It’s a breeding ground for enterprise

With such a strong emphasis on technology, Baltimore (and the state as a whole) is attracting some of the brightest and best minds around. In fact, Maryland was ranked first overall for innovation and entrepreneurship by the U.S. Chamber of Commerce Foundation.

12. The cost of doing business isn’t a killer

Higher overhead costs can mean fewer profits, especially if you’re doing business in a more expensive city. Fortunately, Baltimore is recognized as one of the least costly cities in the nation for small business.

13. It’s a good place to start over

If you’ve tried to open a business somewhere else and failed, a new city may be all that you need. Baltimore, along with Washington, D.C., ranks in the top 10 for the best places to get a fresh start.

14. Or start a business in your golden years

Many seniors use retirement as a chance to pursue their entrepreneurial goals, and your choice of city makes a difference in how successful you are. Baltimore has a lot to offer business-minded retirees, based on its affordability and the fact that you’ve got access to top-notch health care.

15. There’s a large pool of talent to draw from

There are more than a dozen colleges and universities in the Baltimore area, making it a great place for employees who are recent grads. Overall, it’s the fifth best metro area for college students, so there’s a constant stream of fresh faces rolling in.

16. Veterans have an advantage

If you’re considering starting a business after serving a stint in the military, Baltimore is definitely a city to put on the list. There are a number of small business resources for vets, and it ranked fourth in a USAA survey of the best cities for relocating veterans.

17. So do women

Ladies, listen up. Baltimore is quickly becoming one of the top spots for female entrepreneurs, and female-owned businesses are experiencing rapid levels of growth. If you’re a woman who’s ready to strike out on your own, this is a great place to do it.

18. There’s no shortage of office space

Need to find some office space? As of the first quarter of 2015, the Baltimore metro area had 5.5 million square feet available for purchase or lease.

19. Rental rates won’t put you in the red

In terms of how much it costs to rent out office space in Baltimore, the rates are fairly reasonable. As of Q1 2015, the average rental rate was $24 per square foot for Class A office space and $19 to $20 for Class B and C space. That’s about half what you’d pay in a city like the Big Apple or Washington, D.C.

20. Loan funding is available

Numerous local programs have been designed to help burgeoning business owners get their ventures up and running. The Baltimore County Boost Fund, for example, offers loans of up to $250,000 to eligible business owners.

21. Angel investors are also eager to help

If you’re launching something bigger than a retail store or a restaurant, you’re going to need solid financials to get it off the ground. That’s where angel investors come in. Baltimore features several large firms that specialize in funding startups, such as the Baltimore Angels, which offers up to $500,000 in backing for new businesses.

22. It’s tops in education

Baltimore is one of the most educated cities in the country. The city has the third highest spending rate per pupil each year, which can help you if your sector is experiencing a war for top talent.

23. Its quality of life gets high marks

Although Baltimore’s gotten some negative press over the past year, it’s not all bad news here. Thanks to its sustainability and the quality of life residents enjoy, it ranks as one of the 20 best cities on the planet.

Bottom Line

Baltimore Harbor 1 © compulsiveguile (CC BY 2.0) via Flickr

Compared to other large metro areas, Baltimore offers fewer challenges to entrepreneurs who are set on starting a business in terms of cost.

While Baltimore is especially well suited to companies in the tech sector, there are plenty of opportunities for business of all kinds to prosper here.