The Best Small Cities to Start a Business
With National Small Business Week approaching and many employers still struggling to hire new workers, WalletHub has released its report on 2023’s Best Small Cities to Start a Business. To determine the most business-friendly small markets in the U.S., WalletHub compared more than 1,300 cities with fewer than 100,000 residents across 18 key metrics. The data set ranges from small business growth rates and accessibility of financing to investor access and labor costs.
Top 20 Small Cities to Start a Business
1. Washington, UT
2. St. George, UT
3. Cedar City, UT
4. Bozeman, MT
5. Logan, UT
6. South Bradenton, FL
7. Post Falls, ID
8. Fort Myers, FL
9. Lehi, UT
10. Morrisville, NC
11. Eagle Mountain, UT
12. Coeur d’Alene, ID
13. Cheyenne, WY
14. Missoula, MT
15. Midvale, UT
16. Redmond, OR
17. Windsor, CO
18. Winter Park, FL
19. Altamonte Springs, FL
20. American Fork, UT
Key Stats
- Bozeman, Montana, has the highest number of startups per 100,000 residents, 360.68, which is 8.1 times higher than in Muncie, Indiana, the city with the lowest at 44.45.
- Bethesda, Maryland, has the highest share of the population with at least a bachelor’s degree, 87.90 percent, which is 20.9 times higher than in Wasco, California, the city with the lowest at 4.20 percent.
- Kentwood, Michigan, has the most affordable office spaces, at an annual rate of $9.06 per square foot, which is 6.8 times lower than in Mountain View, California, the city with the least affordable at an annual rate of $61.85 per square foot.
- Isla Vista, California, has the lowest labor costs (median annual income), $22,386, which is 11.2 times lower than in Los Altos, California, the city with the highest at $250,000.
- West Odessa, Texas, has the longest work week, 45.90 hours on average, which is 1.9 times longer than in Isla Vista, California, the city with the shortest at an average of 23.90 hours.