Where are the Best Small Cities to Start a Business?

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Recently, WalletHub released its highly anticipated report on the Best Small Cities to Start a Business in 2023. By analyzing over 1,300 cities across the United States with populations below 100,000, WalletHub identified the most business-friendly small markets based on various key metrics. The report provides valuable insights into small cities that offer great opportunities for entrepreneurs and startups. Let’s take a closer look at the top-performing cities and notable findings from the study.

The Top 20 Small Cities to Start a Business:

According to WalletHub’s report, the following small cities emerged as the most favorable places to start a business in 2023:

Washington, UT
St. George, UT
Cedar City, UT
Bozeman, MT
Logan, UT
South Bradenton, FL
Post Falls, ID
Fort Myers, FL
Lehi, UT
Morrisville, NC
Eagle Mountain, UT
Coeur d’Alene, ID
Cheyenne, WY
Missoula, MT
Midvale, UT
Redmond, OR
Windsor, CO
Winter Park, FL
Altamonte Springs, FL
American Fork, UT

There were several key findings, including:

The WalletHub report also highlights several key statistics that shed light on the business environment in these small cities:

Bozeman, Montana, boasts the highest number of startups per 100,000 residents, indicating a thriving entrepreneurial ecosystem.
Bethesda, Maryland, has the highest percentage of residents with at least a bachelor’s degree, indicating a highly educated workforce.
Kentwood, Michigan, offers the most affordable office spaces, making it an attractive option for businesses looking to minimize costs.
Isla Vista, California, has the lowest labor costs (median annual income), making it an appealing choice for businesses seeking to optimize their expenses.
West Odessa, Texas, has the longest average workweek, which suggests a strong work ethic and potential productivity benefits for businesses.

Implications for Entrepreneurs and Startups:

For aspiring entrepreneurs and startups, these findings provide valuable insights for choosing the right small city to establish and grow their businesses. Factors such as the presence of startups, educational attainment, affordable office spaces, labor costs, and work ethic are crucial considerations for entrepreneurs seeking to maximize their chances of success.

Conclusion:

As National Small Business Week approaches, WalletHub’s report on the Best Small Cities to Start a Business in 2023 serves as a comprehensive guide for entrepreneurs and startups. The top-performing cities offer promising opportunities and favorable business environments for aspiring business owners. By analyzing key metrics such as startup density, educational attainment, office space affordability, labor costs, and work ethic, WalletHub provides valuable insights that can help entrepreneurs make informed decisions regarding their business locations. With the right combination of factors, these small cities can become hubs of innovation and economic growth, attracting businesses and creating prosperous communities.