Startups are finding it more difficult to get started in the Silicon Valley than they did just a few years ago. The area now has some of the most expensive labour and housing costs in the nation. Recent immigration legislation further compounds the matter since 57 percent of all science and technology professionals working in the region are foreign-born. Instead of fighting the problems in the Silicon Valley, many startups are heading elsewhere. Here are some places that new businesses are getting their start.

Austin, Texas

Many startups are heading to Austin, Texas, since Texas has many favourable business laws, making it easy for people to start and invest in new businesses. Technology and retail talent are readily available within the city’s diverse population. According to VOA, “The University of Texas, plus the annual SXSW (South by Southwest) technology conference and music festival increase the city’s tech presence on the map by attracting tech experts and entrepreneurs from around the globe. People in the music business also fuel the tech industry in Austin.” Its low cost of living and unique lifestyle are ideal for both recent college graduates and families, creating a welcoming atmosphere for entry level and senior employees. Austin’s residents typically embrace new businesses, small and large, allowing them to thrive from day one.

Salt Lake City, Utah

The area surrounding Salt Lake City, Utah, is becoming another hotbed for startups. Xyngular explains, “some have referred to Utah as the ‘Silicon Valley of Network Marketing’ as literally hundreds of direct selling companies either got their start in Utah or now call the Wasatch Front their home. And it’s true the state’s regulatory environment is perfect to support a nutritional supplement company. But there are also several tech companies that have been created solely to provide distinctive software services tailored to the specific needs of network marketing companies in tracking and connecting sales organizations, paying commissions, and handling customer issues.” It also offers numerous mentoring and teaching resources to startups. A steady supply of talented University of Utah and Brigham Young University graduates as well as Utah’s famed recreational opportunities make Salt Lake an attractive option for any startup. In addition, both residential and commercial real estate are reasonably priced. Like Texas, the state also has many business-friendly tax laws to support startups.

Washington D.C.

According to CNBC, the third best place in the nation to start a business is in Washington D.C. This city has a long history of producing great technology companies with many investors willing to lend a hand. The federal government supports many small businesses, most finding it easier to land a government contract when they are located in the city. The added advantage of having the federal government located within the city’s borders allows for a stable economy and real estate market. Just make sure that government work is the right fit for your business. FAR bans provide guidelines on doing business with the government and can cause some real headaches if you haven’t fully prepared.

There are many factors that help startups decide where to begin their next business venture. A welcoming spirit permeates each of these locations along with business-friendly laws and stable or low-cost real estate options. If you are thinking about starting your own business, all you really need is to come up with your own startup idea, secure funding, and don’t forget to keep these locations in mind when you settle on a place to start in.