Best and worst cities for entrepreneurs in 2026
This is a small town in the western part of the United States, It is known as the Little Switzerland of America, It is autumn and shows small town America with houses lined up on tree lined suburban streets. (Photo by: Joe Sohm/Visions of America/Uni
A new study aimed at small-town America showed the best locations, albeit on a smaller scale, for entrepreneurs to pick when looking for a startup.
Cities with smaller populations can help business starters achieve better results, depending on the type of business, according to a new analysis from WalletHub. The study focused on a variety of different metrics, from growth rate to the number of small businesses to investor access and labor costs, and compared the scores of over 1,300 small-sized cities in America.
What they're saying:
"The benefits of starting a business in a small city include lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond," said WalletHub analyst Chip Lupo.
"But there are drawbacks, too. Entrepreneurs who want to build a large professional network aren’t likely to make as many connections in a town with fewer residents. Other restrictions might include limited industry options, a less diverse customer base, and difficulty attracting and keeping top talent."
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The best small cities to start a business
St. George, UT
With cheap office space and short commutes, St. George, UT, was ranked at the top of the list for both startups per capita and growth in the number of small businesses.
Fort Myers, FL
One of a few Florida towns on the list, Fort Myers, FL, came in second with one of the highest per capita numbers of investors in the country, improving their chances of finding necessary funding.
Washington, UT
The third-best small city to start a business is Washington, UT. The location has one of the country’s highest startups per capita rates and the fourth-highest in number of small businesses.
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The top 100 small cities to start a business are listed as:
Methodology
The study examined several factors across 1,334 cities in America with a population ranging from 25,000 and 100,000 residents. Business environment, access to resources and business costs all come into play when comparing and ranking the cities.
They then took grades of relevant metrics and determined the weight of each city to calculate its overall score.
The Source: This story was written with information provided by WalletHub. This story was reported from Orlando.