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Predicted Hotbeds for SMB's and Startups in 2016
Predicted Hotbeds for SMB's and Startups in 2016

We would all like to start our SMB in wherever we’d want, but the truth is places like Silicon Valley become associated with an industry for a reason. Even a tech business that operates entirely online is dependent upon its geographical location. A business is dependent upon more than just liquidity and internal resources. A successful business needs:

    • Access to investment opportunities
    • The ability to attract and higher talent, especially talent fresh out of universities or fresh from a job in the industry;
    • Diversity is also essential to a successful Tech SMB or startup.
    • An external support network;
    • Exposure to new ideas and cutting edge tech coming out of universities and tech incubators.

Of course, this is not a complete list of all a business needs. It’s merely a brief overview of the advantages to establishing oneself in a “hotbed.” So what are some of the biggest U.S. hotbeds? What about the rest of the world? Well, our market analysts have some predictions on what the hottest cities for tech SMBs and startups in 2016 – and why.

The Current and Continued Tech Centers in the U.S.

• East Coast:

Boston is the standard second outpost for dozens of tech companies. While obviously not a rival to the inemicable Silicon Valley, Boston has the support network, the proximity to the midwest and the east coast, and the intellectual support from tech incubators and universities (including Harvard and M.I.T.). While it lacks strong support for startup funding – at least compared to the Valley – Boston will still be one of the hottest spots for any tech startup. In fact, the Bloomberg US Innovation Index just ranked Massachusetts as the most innovative state in the union.

New York is the east coast hub (and arguably the U.S. hub) for one of the hottest new business trends: The EdTech sector. In late 2014, Cisco announced its intention to purchase the company Meraki. What does Meraki do? They sell hardware for large networks. One of their biggest clients? Surprise, surprise: Schools, especially charter schools. More important, New York is possibly their best selling market.

• The Midwest

Chicago may be in the news a lot for other reasons, but it is still a financial and tech powerhouse. Recently, Chicago has attracted some big names in the mobile industry, including the co-founder of Siri, Dag Kittlaus. Other Chicago-based companies (such as Tap Me Inc) are driving innovation in mobile apps and advertising – fact that should excite anyone with a startup business idea.

Detroit is once more on the rise – yup. that Detroit! Just a few years ago, Detroit was held up an example of capitalism at its worst. Today we hold it up again as an example of capitalism at its best. Currently the 12th highest paying state for techies, Michigan is pushing hard to attract new tech companies. With the tech giant Amazon investing millions in a downtown revitalization project and with plans to open an office in the Motor City, Detroit is quickly becoming a tech powerhouse.

• The West

I know, we are all aware – Silicon Valley is still number one. Silicon Valley has the academic support, the networks, and the financial support that no other city in the world has (at least for tech). California is still second on the Bloomberg Index mentioned previously, and people are still “California Dreamin’” (Sorry Mama Cass, couldn’t resist). However, the high cost of living and the extreme traffic patterns are starting to cause some changes. While it’s too soon to say the Valley is on its way out, some changes need to be made soon if we want to remain the darling of the tech world.

Seattle is another up and coming tech hub. While nearby Redmond has been the main campus for Microsoft since the beginning, new campuses and new management have led to more and more Microsoft employees making the move up to The EverGreen State. Seattle is quickly becoming the next “cool spot” for trendsetters and techies – good news for tech startups!

Los Angeles is the west coast EdTech counterpart to New York. While New York is still number one in EdTech, The City of Angeles is striving hard to make its own mark. The L.A. Unified School District and Chamber of Commerce have both made steps to improve business and academic support for the tech industry – a necessary step to becoming the center for any industry.

This is by no means a comprehensive list. Cities from Atlanta, to Chattanooga, to Houston are all making steps to improve tech industry infrastructure and all three are likely to become important tech centers in the years to come.

Moreover, this list barely touches on tech centers around the world. From Melbourne, Australia, to London, U.K., the tech industry is growing in leaps and bounds. The tech world is growing ever larger in size and will soon encapsulate all industries – don’t wait too long to get started on your own project!

About SDI

SDI is a software, website and mobile app development company in Silicon Valley with offices around the world in tech hotspots of all types. Our head office is nestled dead center in Silicon Valley, minutes away from the Apple, Google, and eBay campuses – and right across the street from Roku, the digital media giant. 85% of our business come from the United States and Canada, giving us access to some of the biggest predicted trends in 2016.

At SDI we design and develop apps in Silicon Valley and market them to the world. We validate your idea and tell you what will work in the industry. With years of experience in the industry we take a startup idea and make you famous. Many of our apps have been featured in TIME magazine and USA Today, yours can be next!

If you would like to hear more about what we think tech is headed and where you could take your business, give us a call at 408.802.2885, or email us today. Get in touch now for a free business consultation with our Tech Director! Stop by our LinkedIn page to check out our credentials. We look forward to hearing from you soon!

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