WalletHub Ranks the Best Small Cities to Start a Small Business

Home » Small Business » Small Business News » WalletHub Ranks the Best Small Cities to Start a Small Business

WalletHub Ranks the Best Small Cities to Start a Small Business

We’ve all seen various annual lists looking at the top cities to start a small business (we’ve definitely discussed them here as well). However these studies often look at major markets and metro areas — so what about some of America’s hidden gems? That’s why the personal finance site WalletHub has just released a new report highlighting the top small cities to start a business in 2019.

To create their list, WalletHub evaluated 1,261 cities with populations between 25,000 and 100,000. For each they looked at 18 different metrics falling into three main categories: business environment, access to resources, and business costs. “Business environment” includes figures such as average length of work week, average commute time, average growth in number of small businesses, startups per capita, and more. Next, “access to resources” looked at financing accessibility, investor access, working-age population growth, etc. Finally “Business costs” considered office-space affordability, labor costs, corporate taxes, and cost of living.

Coming in first overall was Holland, Michigan. Propelled by its top placement in the “Access to Resources” category, Holland actually ranked 351st for “Business Environment” and 81st for “Business Costs.” Meanwhile the rest of the top “five” included St. George, Utah; Fort Myers, Florida; Redman, Oregon; Huntsville, Texas; and Cheyanne, Wyoming — with the lattermost two tying for fifth place. Huntsville also placed first in the “Business Environment” category while 437th overall ranked Goldsboro, North Carolina came out on top for “Business Costs.”

Looking further down the list, both Florida and Utah were well represented. In addition to each of them placing a city in the top five, both states had another three cities land in the top 20. For the Sunshine State these included Dania Beach (#11), Boca Raton (#14), and Deerfield Beach (#15). As for the Beehive State, Clearfield, Cedar City, and Springville claimed slots 18 through 20 on the list.

While those locales were all overall winners, WalletHub also ranked cities in some more specific categories. For example the city with the most accessible financing was St. Cloud, Minnesota — with a slew of Californian cities from Menifee to Apple Valley bringing up the rear. In terms of lowest labor costs, it was East Saint Louis, Illinois that topped the list. Last but not least it was a six-way tie for first between Salisbury, Maryland; Carbondale, Illinois; New Iberia, Louisiana; Gulfport, Mississippi; Biloxi, Mississippi; and Warner Robins, Georgia for the highest average growth in small businesses.

Despite the emphasis usually placed on big metropolitan markets, it seems that small cities and small businesses can go hand in hand. While each location may come with its own challenges, there may also be advantages to staying in a smaller market. But, as always, the best place to open your business and realize your entrepreneurial potential is wherever you feel like setting up shop.


Also published on Medium.

Comments

These are good figures to to look upon but it’s a matter or supply vs demand whichever city you’ll want to start your own business.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Equifax Fined Up to $700 Million Due to Data Breach

Nearly two years after Equifax announced that a data breach had exposed the information of approximately 147 million customers, the credit bureau has reached a settlement deal. This morning the Federal Trade Commission (FTC) announced that Equifax had agreed to pay at least $575 million and as much as $700...

American Express Announces New Blue Business Cash Card

Over the past decade, credit card company American Express has worked to align themselves with small business owners. This includes founding the increasingly popular retail holiday Small Business Saturday, observed the weekend after Thanksgiving each year. Continuing that mission, this week the company announced the launch of a new small...

Mobile Bank Varo Money Refiles for FDIC Insurance

For years one of the big questions surrounding FinTech is whether startups could one day become their own independent banks. Although a few companies have attempted to obtain charters of their own, they've had varying levels of success — none of which have been overwhelmingly positive. However, as Crowdfund Insider...