Why Salt Lake City is such a great place for a small business
There are many reasons why Salt Lake City is a great place for families, but why is it so appealing for business? Let’s have a look at each of the reasons why Utah has such a business-friendly climate.
A Strong Business and Education Environment
Utah has consistently ranked number one for job growth in several official measures. It also enjoys low unemployment rates, and a strong, highly educated workforce. And at the heart of this success? Small businesses. The U.S. Small Business Association, Utah has more than 203,000 small businesses. This is a fertile environment for business owners who want to bring their small businesses to the state. And here at First Utah Bank, we are proud to offer business checking, SBA loans, and other products and services to directly help entrepreneurs and business owners succeed.
You can also find a highly educated and motivated workforce in Utah. And we all know nothing is more important to a company than being able to find qualified and motivated workers. Just about any business owner will tell you, if he or she cannot find good people, they won’t be able to operate.
And whether you are in the north or south of the state — in Lehi or Salt Lake City — Utah has a first-class education system. There is a strong partnership between businesses and both K-12 and higher education institutions. The result is that schools and business leaders have constant dialogue. They work together to identify gaps in the workforce and make strong efforts to develop plans that fill those deficiencies. The effort to bring business and education together is evident through the Talent Ready Utah initiative, which provides technical training for students through high school. That way, when they graduate, they have both a degree and a high-paying job.
Utah Has Been Home to Big Businesses
The interesting thing is a lot of people come from outside Salt Lake City. They spend their time outside the city building their expertise in a particular field. But eventually, like so many others, they come to the Valley to chase their entrepreneurial dreams. Consider that many major tech companies were founded in Utah, from Novell to WordPerfect, Fusion IO, and Omniture, a company that sold to Adobe ten years ago for $1.8 billion.
Many analysts believe Utah has a natural tendency towards two types of businesses. One is software, internet, and hardware technology companies. The other is medical devices. Did you know that the University of Utah is a leader in medical device development? That’s right. The University of Utah medical school has been a world leader in the development and design of high-tech medical devices and medical device technology.
Utah also has a favorable tax environment. The flat five percent personal and corporate tax rate is one of the lowest in the country. Utah also has a loose regulatory environment. In 2011, the state conducted an incredibly thorough tax review. Since that review started, almost 2,000 regulations have been modified or eliminated.
Are There Any Weaknesses in the SLC Business Environment?
But are there any weaknesses in the Salt Lake City area? There may be a couple. First, Utah still needs more software engineers. There are a lot of startups and emerging companies coming out of Utah, but finding skilled software engineers is increasingly difficult. This is an issue for Utah, but also for other states all over the country. Technology jobs are in high demand and there simply aren’t enough highly skilled workers to go around.
Another area where Utah could use more talent is at the C-suite level. When companies in Utah achieve a mid-size company status, working with anywhere from $5 million to $20 million in sales, there aren’t enough executive-level individuals in Utah to take these companies to the next level. In many cases, a company will get sold before the founding or managing team has taken them as far as it can go.
A final issue that has reared its ugly head in the past six months is related to the fact that Utah is landlocked. We don’t have any major oceans or bodies of water on our borders. So issues like the ongoing supply chain crisis impact us acutely. As supply chain problems ease up, however, expect to see Utah shoot out of the gate with strong corporate performance and innovation.
Ultimately, Utah is well-known as being a business-friendly and beautiful state. This is a place where one can settle with their family and start a profitable, successful business. And here at First Utah Bank, we are proud to offer our services to those who do just that. Have you recently moved to Utah and started a company? Or do you live here and plan on starting one? Contact us today and find out how our business services can help you succeed in Salt Lake City and beyond!