Starting a business is an exciting yet challenging endeavor, and the location you choose can significantly influence your success. Small cities often offer a unique blend of lower costs, community support, and quality of life that can be advantageous for new businesses. Here, we explore the best and worst small cities to start a business in 2024, based on a comprehensive survey of 1,334 cities by WalletHub.
Let’s talk about the 10 best small cities first.
Cedar City, UT
Cedar City ranks as the best small city to start a business with a total score of 67.18. The city’s supportive local government, affordable living costs, and robust economic environment are key factors in its top ranking. Cedar City stands out with a business environment rank of 2, providing a thriving ecosystem for entrepreneurs. Additionally, it ranks 43rd in access to resources and 204th in business costs, ensuring a balanced approach to business support and affordability.
St. George, UT
St. George is another top contender with a total score of 65.91. Known for its strong economic growth, particularly in the technology and healthcare sectors, St. George provides a fertile ground for startups. It ranks 1st in business environment, 226th in access to resources, and 148th in business costs, making it an ideal location for new ventures.
Fort Myers, FL
Fort Myers offers a thriving tourism industry, high startup survival rates, and numerous resources for entrepreneurs. With a total score of 62.49, the city ranks 54th in business environment, 23rd in access to resources, and 82nd in business costs. Fort Myers’ sunny weather and strong customer base are significant advantages for new businesses.
Washington, UT
Washington, Utah, is noted for its supportive local policies and affordable commercial spaces. The city has a total score of 61.93 and ranks 10th in business environment, 132nd in access to resources, and 437th in business costs. Its high quality of life and growing economy make it a prime spot for new ventures.
Post Falls, ID
Post Falls benefits from low living costs and a friendly business climate, reflected in its total score of 61.73. The city ranks 13th in business environment, 191st in access to resources, and 371st in business costs. Its strategic location near major transportation routes adds to its appeal to entrepreneurs.
South Bradenton, FL
South Bradenton offers a unique mix of a strong local economy and affordable business costs. The city’s supportive business community is reflected in its total score of 61.42, with rankings of 82nd in business environment, 602nd in access to resources, and 70th in business costs.
Morrisville, NC
Morrisville is recognized for its high-tech infrastructure and proximity to Research Triangle Park. It has a total score of 61.39, ranking 30th in business environment, 29th in access to resources, and 427th in business costs. These factors make it a favorable environment for startups.
Lehi, UT
Lehi stands out for its booming tech industry and robust economic growth. The city has a total score of 61.21, ranking 4th in business environment, 131st in access to resources, and 545th in business costs. Its affordable commercial real estate and supportive local policies make it an attractive option for startups.
Altamonte Springs, FL
Altamonte Springs boasts a strong local economy, high quality of life, and ample business resources. With a total score of 60.87, it ranks 37th in business environment, 211th in access to resources, and 128th in business costs. The city’s strategic location near major highways enhances its business appeal.
Coeur d’Alene, ID
Coeur d’Alene offers a beautiful natural setting and a supportive business environment, earning a total score of 60.81. The city ranks 6th in the business environment, 518th in access to resources, and 406th in business costs. Coeur d’Alene’s growing population and strong tourism industry provide a steady customer base for new businesses.
Now, here are the 10 worst small cities to start a business.
Cupertino, CA
Despite being home to major tech companies, Cupertino ranks as the worst small city to start a business with a total score of 27.51. The city faces high living costs, limited commercial space, and challenging business conditions. Cupertino ranks 1054th in the business environment, 349th in access to resources, and 1334th in business costs, making it a difficult environment for startups.
Saratoga, CA
Saratoga struggles with high costs and limited support for new businesses, reflected in its total score of 29.08. It ranks 918th in business environment, 539th in access to resources, and 1328th in business costs. These factors contribute to a less favorable climate for entrepreneurs.
Oakley, CA
Oakley’s high costs and limited economic opportunities make it difficult for new businesses to thrive. With a total score of 30.70, Oakley ranks 1255th in the business environment, 929th in access to resources, and 1272nd in business costs. The city’s infrastructure also needs improvement to support business growth.
Pacifica, CA
Pacifica faces high living and business costs, coupled with a challenging regulatory environment. This results in a total score of 31.19. The city ranks 719th in business environment, 1188th in access to resources, and 1311th in business costs, making it less favorable for new ventures.
Potomac, MD
Potomac’s high costs and limited business support services present significant hurdles for entrepreneurs. With a total score of 31.28, it ranks 1128th in business environment, 875th in access to resources, and 1296th in business costs. The city’s economic environment is not conducive to new businesses.
Los Gatos, CA
Los Gatos, despite its scenic beauty, has high commercial lease rates and limited support for startups. It scores 31.47 overall, ranking 594th in business environment, 229th in access to resources, and 1332nd in business costs. These factors make it challenging for new businesses to establish themselves.
Danville, CA
Danville’s high costs and limited access to venture capital pose significant challenges for new businesses, resulting in a total score of 32.04. The city ranks 641st in business environment, 405th in access to resources, and 1324th in business costs, making it difficult for startups to succeed.
Gilroy, CA
Gilroy faces high business costs and a less supportive economic environment, making it hard for startups to succeed. It has a total score of 32.11, ranking 1046th in the business environment, 1070th in access to resources, and 1280th in business costs. The city’s infrastructure requires significant improvements.
Hercules, CA
Hercules has high living and business costs, coupled with limited economic opportunities, resulting in a total score of 32.22. It ranks 1115th in business environment, 714th in access to resources, and 1288th in business costs. These factors make it difficult for new businesses to thrive.
Morgan Hill, CA
Morgan Hill’s high costs and limited business support services present significant challenges for entrepreneurs, earning a total score of 32.23. The city ranks 852nd in business environment, 978th in access to resources, and 1303rd in business costs. These factors contribute to a challenging business environment for startups.
Los Altos, CA
Los Altos, despite its affluent community, struggles with high business costs and limited support for startups. It has a total score of 32.61, ranking 881st in the business environment, 95th in access to resources, and 1328th in business costs, making it a less favorable environment for new ventures.
