Sioux Falls’ Startups: Are They on the Brink of a Shocking Collapse? Discover the Hidden Truth!

Jan. 7, 2026

By Brienne Maner, president of Startup Sioux Falls

Celebrating a grand opening is just the beginning; the real narrative of entrepreneurship in Sioux Falls unfolds long after the ribbon-cutting. As founders grapple with payroll, customer retention, and talent management, the journey to sustainability is often fraught with challenges. At Startup Sioux Falls, our role extends beyond merely celebrating new enterprises; we are committed to providing the essential tools that foster long-term success.

Supporting entrepreneurs, local businesses, and family-owned operations in our community is vital, especially as they navigate fluctuating markets, workforce changes, and funding uncertainties. This commitment is deeply rooted in our community, which thrives on collaboration and innovation.

A Community Built on Belief

As we move forward, it is important to acknowledge the contributions of Mayor Paul TenHaken and his administration. Their steadfast support of local startups and small businesses has cultivated a culture where innovation is embraced. This environment encourages individuals to build, stay, and grow in Sioux Falls.

As we approach a new political cycle, we encourage mayoral, City Council, and state candidates to prioritize entrepreneurs and homegrown businesses in their platforms. These enterprises are not just economic contributors; they are the backbone of our neighborhoods and future workforce. Strong policies, flexible frameworks, and consistent collaboration with economic development partners are essential for the city’s progress over the next decade.

Why Sustainability Matters More Than Ever

The entrepreneurial landscape is evolving rapidly. Founders now face economic uncertainties, budget constraints, workforce shifts, and advancements in artificial intelligence. Many are adopting leaner business models, launching with smaller teams, and testing ideas in real time.

Sustainability now extends beyond individual businesses; it encompasses the broader networks that support them. The human touch remains crucial. Our downtown co-working space has emerged as a hub where founders can connect, fostering a sense of belonging. This connectivity significantly influences entrepreneurs' decisions on where to establish their companies.

Investing in community experiences transcends quality of life; it serves as economic infrastructure that sustains local businesses and attracts new founders to Sioux Falls. Our support systems must adapt to meet the changing needs of entrepreneurs.

At Startup Sioux Falls, we have embarked on our own entrepreneurial journey. Over the past few years, we have grown alongside the founders we serve, enhancing our programs to support individuals starting their first business, leaders scaling teams, and CEOs managing established companies while maintaining an entrepreneurial mindset.

Our framework—Start, Scale, and Sustain—guides the design of our programs and partnerships, allowing us to meet founders where they are while keeping a long-term vision for sustainable success. By 2031, we aim to measurably support 300 resilient Sioux Falls businesses that generate sustainable revenue and reinvest in our community. This goal shapes our impact and growth strategies.

We remain focused on cultivating a cohesive and inclusive ecosystem that engages with K–12 schools, technical schools, and universities, ensuring the next generation is aware that they can build their futures right here at home.

At the recent South Dakota Bio Summit, Bill Even, Commissioner of the Governor’s Office of Economic Development, reflected on the bold entrepreneurs who have shaped our past and urged us to remain optimistic. He emphasized the importance of strengthening the systems that support the founders of tomorrow. This optimistic spirit is essential as Sioux Falls embarks on its next chapter.

Looking Ahead to 2026 and How You Can Get Involved

As we enter 2026, Startup Sioux Falls is expanding our programming and refining our support systems to enhance the pathway for founders to start, scale, and sustain their businesses. Entrepreneurship flourishes in a collaborative environment, surrounded by innovative ideas and community momentum.

Here are three ways you can contribute to our collective journey:

• Join the room: Attend an upcoming Startup Sunrise or Startup Skills Workshop to connect, learn, and grow alongside local founders.
• Send founders our way: If you know someone considering starting a business or working to grow one, connect them with our accelerators, mentorship network, co-working facility, and community resources.
• Be an advocate: Support small businesses, share their stories, and encourage founders, making Sioux Falls a place where entrepreneurship feels attainable for all.

Our comprehensive 2025 Annual Report details our progress and future momentum. We invite you to explore it and join us in shaping what’s next. Startup Sioux Falls serves as a launching pad for innovation, possibility, and community business, embodying the Sioux Falls ethos of "Start, Scale, and Sustain." Let’s work together to foster a vibrant entrepreneurial ecosystem.