Best Small Cities to Start a Business

With advantages of lower overhead costs and stronger customer relationships, small cities are attractive for entrepreneurs looking to transform their idea into a concrete business.

Personal finance website WalletHub determined a list of the best cities for starting a business as a way to celebrate National Small Business Week starting on May 1. “Small cities” were defined as cities with a population size between 25,000 and 100,000 residents. Analysts compared 1,268 small cities across three key dimensions: business environment, access to resources and business costs.

Each dimension included metrics such as “average growth in number of small businesses,” “prevalence of investors” and “office-space affordability.”

Here is the list of the top 10 best small cities to start a business:

  1. Holland, MI
  2. North Chicago, IL
  3. Brighton, NY
  4. Jefferson City, MO
  5. La Vergne, TN
  6. Inver Grove Heights, MN
  7. Clearfield, UT
  8. Dothan, AL
  9. Cheyenne, WY
  10. Deerfield Beach, FL

“In a small city, it will be easier to get to know the best service providers such as lawyers, your banker may likely be someone you know, and you can more easily create a name for yourself,” said expert panelist Chuck Sacco, assistant dean of strategic initiatives at the Charles D. Close School of Entrepreneurship.

“Local authorities need to provide a platform that incentivizes startups, look to its top entrepreneurs as leaders, and then do their best to keep up to allow the entrepreneurs to thrive,” said fellow expert panelist Birton J. Cowden, associate director of the Berthiaume Center for Entrepreneurship in the Isenberg School of Management at University of Massachusetts Amherst.

For the rest of the list, visit