With National Small Business Week on the horizon and a staggering 20% of new businesses failing within their first year, WalletHub has released a timely report to empower aspiring entrepreneurs. Their in-depth analysis identifies the most business-friendly small cities in the U.S., offering valuable insights to help startups not just survive, but thrive.
Methodology and Metrics
WalletHub compared over 1,300 cities with fewer than 100,000 residents across 18 key metrics to determine the most favorable locations for small businesses. These metrics encompassed factors crucial to a startup’s success, including:
- Small business growth rates
- Accessibility of financing
- Investor access
- Labor costs
Top Performers
The analysis revealed some surprising and promising locations for aspiring business owners. Here are the top 5 small cities to start a business in 2024, according to WalletHub:
- Cedar City, UT
- St. George, UT
- Fort Myers, FL
- Washington, UT
- Post Falls, ID
Beyond the Top Spots
The full report, available at https://wallethub.com/edu/best-small-cities-to-start-a-business/20180, provides a comprehensive ranking of all 1,300 cities analyzed. It also highlights some interesting trends:
- Startup Hotbed: Bozeman, Montana boasts the highest number of startups per capita, a staggering 8.5 times higher than Galesburg, Illinois, which ranked lowest in this metric.
- Education Matters: Bethesda, Maryland takes the crown for the highest percentage of residents with a bachelor’s degree, a figure 19.1 times higher than Coachella, California, the city with the lowest educated population.
- Office Space Affordability: Kentwood, Michigan offers the most affordable office spaces, boasting a cost 6.8 times lower than Mountain View, California, the priciest city for office rent.
- Labor Cost Considerations: Isla Vista, California offers the lowest labor costs (based on median annual income), a significant advantage 10.8 times greater than Los Altos, California, on the other end of the spectrum.
- Work-Life Balance: For those seeking a better work-life balance, Fort Hood, Texas might not be ideal. It holds the dubious distinction of having the longest work week, 1.9 times longer than Isla Vista, California, the city with the shortest average workweek.