The depressed business environment in Las Vegas can be a positive when it comes to starting a new business.
In its August issue, Entrepreneur Magazine names Las Vegas as a top city for entrepreneurs. Record unemployment means a plentiful labor pool from which to hire the best workers. High commercial vacancy gives tenants bargaining power on lease rates.
The article states that the startup phase of a business can be very cash intensive. A depressed economy creates discount rates for startup companies.
“Downturns in the economy create the perfect environment for innovative new businesses,” said Emmet Scott, principal of Entrepreneur Advisors, a business consulting firm. “Rental space is cheap, qualified labor is more available and entrenched relationships are now shakier, allowing the entrepreneur a chance to win the business.”
Along with startups, established companies are expanding in the changing market as well.
Entrepreneur Magazine quoted Pamela Jenkins, a New York transplant who owns two locations of The Cupcakery in Las Vegas and opened two more in Texas. She’s planning a fifth location near the Strip.
“As an entrepreneur, Vegas is a great place to start a business,” Jenkins said. “The community appreciates locals and they’ve supported me immensely. From what I’ve seen, Vegas is like a giant small town.
Other cities mentioned in the article include Phoenix; Portland, Ore.; Orlando, Fla.; and San Diego.