Economy

Wondering Where to Open a Small Business? Yelp It.

The company has ranked 50 American cities on how friendly they are to new businesses.
Jim Young/Reuters

People usually look to Yelp to find a decent pizza place, scope out a hairdresser, or read impassioned customer reviews of yarn stores. Now, Yelp is promising to provide a different service: help aspiring entrepreneurs decide where to open small businesses. The company’s “Local Economic Outlook” report, released last week, takes a look at the economic health of 50 cities across the United States, using the company’s user-generated data for the third quarter of 2017.

The report ranks cities on an economic opportunity spectrum, and tracks net growth in number of businesses in a given community. Yelp data editor Carl Bialik, who authored the report, says the index is built to help entrepreneurs beat the odds—half of new businesses fail within five years.