The global business map is changing rapidly. While the likes of New York, London and Tokyo remain powerful traditional business capitals, a new wave of cities is stepping into the spotlight. Knowing about these emerging hubs could be useful if you’re planning a startup on the cheap, if you’re looking to tap into new booming markets or if you’re a digital nomad looking for their next adventure. Pack your bags and get ready for a tour of ten cities that are set to become the next commerce hotspots.
Tallinn, Estonia
Tallinn has become a Mecca for tech startups thanks to its strong digital infrastructure, low bureaucracy and attractive e-Residency program. It has produced notable unicorns (businesses valued over $1 billion) in the past including Skype, Wise and Bolt and is currently home to 70% of all startups in Estonia. Companies looking for a European base should consider this city for its relatively low operating costs and business networking opportunities. Remote workers are also likely to find it to be an exciting place.
Bengaluru, India
Recently nicknamed the ‘Silicon valley of India’, Bengaluru has become a magnet for both Indian and international startups, as well as becoming a base for global giants like Infosys and Tata. There is a huge amount of fresh IT and engineering talent available as a result of prestigious universities based here, making it a great place to consider building a team. You’ll also find a lot of venture capital firms and co-working spaces here. Compared to many cities around the world, operating costs here are also relatively low, which has helped many companies to grow fast.
Miami, USA
Miami is more than just a sunny tourist destination – it’s seen an influx of startups in recent years, partly due to Florida’s favorable tax policies and business-friendly legislation. Its geographic location also makes it a great gateway for companies trading with clients in Latin America and the Caribbean. Major companies based in Miami include VITAS Healthcare, Burger King, Royal Caribbean International and Ryder System Inc. Crypto seems to currently be big business here and it’s become a hub for DeFi-based startups.
Lisbon, Portugal
A digital nomad capital, Lisbon is known for its low cost of living and vast amount of co-working spaces. Its popularity is also largely down to Portugal’s visa schemes and incentives that make moving to Lisbon cheap and easy. In recent years, it’s hosted notable tech events like Web Summit. This has led to an increasing number of tech startups moving here to network, which has also encouraged investors to flock to Lisbon.
Ho Chi Minh City, Vietnam
Ho Chi Minh City is rapidly becoming one of the biggest new business hotspots in Southeast Asia. Multinational companies have become drawn to its competitive labor costs. It’s also seen an influx of digital nomads thanks to its abundant public Wi-Fi, numerous co-working spaces and celebrated cafe culture. Meanwhile, government initiatives have been encouraging startups. E-commerce, fintech and software development are particularly thriving industries within this city.
Melbourne, Australia
Although often overshadowed by Sydney, Melbourne has become a vibrant business capital within Australia. It’s become an inviting place for digital nomads due to its coffee culture, network of hostels and useful local services such as these Melbourne CBD lockers. A number of entrepreneurs have also been moving here permanently – drawn to the city’s frequent high rankings in global livability indexes and extensive government-backed programs. Popular industries here include fintech, healthtech and edtech. World-class universities meanwhile provide an abundance of highly-skilled workers.
Warsaw, Poland
Poland’s capital has become a compelling place for startups and multinational companies to base operations due to its strong infrastructure and low tax rates. There is also a strong talent pool here as a result of reputable universities in the area and the unemployment rate is very low (1.3% to 2.7%) as a result of rapid business growth. IT, Finance and HR are some of the most popular industries for emerging businesses.
Jakarta, Indonesia
Boasting a population of over 41 million, Jakarta has absolutely huge market potential. Startups and multinational companies have realised this and have started to set up bases in this city. An industry that is particularly big in Jakarta is logistics – due to its location, it has become a popular city for companies wanting to easily access both the Southeast Asian market and Australian market, while paying relatively low operating costs compared to most other major cities. The city does have its infrastructure challenges, but new business districts are forming that direct operations away from more congested areas.
Abu Dhabi, UAE
While Dubai gets much of the attention, Abu Dhabi is an equally thriving city within UAE in which businesses are supported by sovereign wealth funds and government-backed programs. The country is known for charging no income tax to residents and VAT is only 5%. This makes Abu Dhabi an easy place to generate wealth. Finance and tech startups have been moving into this city rapidly and it has become an innovation hub within the Middle East that is certain to keep growing in years to come.
Medellin, Colombia
Once known for all the wrong reasons, Medellin has undergone an impressive reinvention and is now one of the biggest emergency business centres in South America. The city has been supporting startups through tax incentives, tech parks and public-private partnerships. The relatively low cost of living and warm climate meanwhile have made it an attractive place for digital nomads, and there are a growing number of co-working spaces and hostels aimed at remote workers. Industries thriving here include biotechnology, software development and creative industries.
Choosing an emerging business hub
When choosing one of these cities to work remotely from or launch your startup, consider local incentives and networking opportunities that may be relevant to your industry. Also consider the geographic location – are there other cities and countries nearby that could be easier to trade with? Tax rates and cost of living are worth weighing up too if you want to maximize profits.
