No Tasmanian cities were among the top 15 in Australia to start a business, a new study has revealed. The study analysed 17 factors in four major categories: talent pool, business landscape, internet speed and cost of living.
The three Tasmanian cities included – Hobart, Devonport and Launceston – failed make the grade due to their comparatively low talent pool and internet speed scores.
Perth claimed the top spot with an overall score of 68.35/100, thanks to its strong talent pool, thriving business environment and impressive internet speeds. It’s a huge jump from last year, when Perth ranked 20th.
Brisbane also climbed the ranks, moving from eighth to second place, with a major boost in digital infrastructure playing a major role, scoring 66.72/100. Adelaide also made its way into the top three from 13th place last year, with a total score of 66.25/100.
Canberra and Queanbeyan had the most dramatic improvement of all, jumping 31 spots to land in fifth place with a score of 63.58/100, driven by the city’s skilled workforce and connectivity.
On the flip side, some 2024 frontrunners have slipped. Geelong, last year’s number one, dropped out of the top 10 entirely, while Ballarat fell from second to eighth. These changes highlight how quickly the startup landscape can shift, especially as factors like digital capability, affordability and access to talent continue to shape where businesses are most likely to succeed.
Hobart emerges as the best city in Tasmania to start a business, with a strong business landscape score (77.27) and a balanced cost of living (55.68/100), resulting in an overall score of 55.30/ 100.
Launceston follows closely behind with a slightly lower score of 55.08/100, boosted by its affordability (68.07/100) and solid business environment (71.35/100).
Devonport ranks third, scoring notably lower at 39.55/100, largely due to a limited talent pool (16.83/100) and very low internet speeds (9.05/100).
Despite this, the Tasmanian cities hold the best score nationally for long and short-term business survival rates.
Sam Allert, CEO of Reckon who commissioned the annual study, said that small businesses are the engine room of the economy.
“We’re seeing growth pop up in places you might not expect. When we looked at things like talent, infrastructure and affordability, it became clear that opportunity is no longer confined to the capital cities.
“For business owners, flexibility is everything. It’s important to always keep an eye on emerging markets with the right mix of talent, affordability and infrastructure. A lot of the time, the best opportunities are in places flying under the radar. Invest in digital, stay close to your local community and don’t be afraid to think beyond the big cities. That’s where you’ll often find the real potential.”
More information on the Start Up Cities 2025 Report here.
Tasmanian Times (TT) is a community-based news and current affairs service covering the island state of Tasmania. It exists to provide a diverse view of Tasmanian issues. TT creates and supports independent media content utilising the best of modern technologies and tried-and-true practices of public-interest journalism.
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