This month’s Entrepreneur magazine reports on the best cities to start your company in, across large, mid-size, and small cities.

#1 Large City: Phoenix, AZ
Phoenix earns the top spot due to its high percentage of start-ups in the past year, real estate prices in the area, and community services to help entrepreneurs get started.

But that doesn’t mean that Phoenix doesn’t have its challenges. Maricopa County had the largest population increase in 2003-2004, as compared to all other counties across the US. The city is also implementing a light-rail project which is a multi-year project that will disrupt multiple parts of the city during its construction.

#1 Mid-Sized City: El Paso, TX
Ranking near the top in start-ups and growth, El Paso beat out other cities by its high scores across the board. Because of its location, El Paso is more closely tied in business and in life to Ciudad Juarez, Mexico, that to other cities in Texas. This location gives El Paso good business with the maquiladoras in Juarez and over $3.4 billion a year in spending from Mexican tourists. Additionally Fort Bliss nearby provides work in government contracts, currently about 16% of El Paso’s economy.

City of Phoenix, Arizona
City of El Paso, Texas

Via / Entrepreneur.com: Best Cities for Entrepreneurs
Arizona State Guide to Doing Business
Texas State Guide to Doing Business