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Small Business Performance Metrics
Weighting of factors used to evaluate business-friendliness in small US cities.
Primary Sources
Best Small US Cities for Starting a Business - Business Insider
Dover, Delaware, was ranked 10th among small cities for starting a business. DenisTangneyJr/Getty Images 2026-04-20T17:01:32.726Z WalletHub ranked more than 1,300 small cities based on business-friendliness. The report was based on factors including costs, access to resources, and business environment. Cities in Florida and Utah took the most top spots, together occupying 10 of the top 15 cities. Between startup costs, regulations, and legal hurdles, there are many factors to consider when starting a business. But as a recent study shows, sometimes the most important one could be the city itself.WalletHub recently conducted a study of more than 1,300 small cities — each with a population of 25,000 to 100,000 — to determine which were the best for starting a business. The personal finance website evaluated each city across three categories: business environment, access to resources, and business costs.The business environment category considered average commute time, startups per capita, and industry variety, among other factors. Access to resources considered factors such as higher education access and investor access, while business costs factored in cost of living, taxes, labor costs, and office-space affordability.WalletHub gave each city a score based on its weighted average across the metrics and ranked each city based on this overall score.The analysis used data from the US Census Bureau, Bureau of Labor Statistics, Federal Deposit Insurance Corporation, Indeed, and other sources."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," WalletHub analyst Chip Lupo said in the report.Lupo also noted the shortcomings of starting a business in a small city. "Entrepreneurs who want to build a large professional network aren't likely to make as many connections in a town with fewer residents," he said. "Other restrictions might include limited industry options, a less diverse customer base, and difficulty attracting and keeping top talent."California appeared most often in the list of 1,334 cities, while Florida and Utah dominated the top 15 with a total of 10 cities between them.Alaska and Vermont appeared least on the full list, each represented by only one city: Fairbanks, Alaska, and Burlington, Vermont.See the top 15 small cities in WalletHub's report.When photos of some cities were unavailable, Business Insider used photos of ...
On Wallethub's list of Best & Worst Small Cities to Start a Business ...
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Want a Cheat Code for Starting a Business? A New Study of 1,334 Cities ...
WalletHub ranked cities with populations between 25,000 and 100,000 by 18 metrics — everything from the growth rate of small businesses to investor access ...
North Chicago Ranked Top Illinois City for Starting a Business
According to a new WalletHub study, the city of North Chicago has been ranked as the number one small city in Illinois and 56th nationwide for starting a business. The rankings evaluated more than 1,300 cities with populations under 100,000, looking at factors like business environment, access to financing, and overall costs. City leaders say the recognition reflects their ongoing efforts to ...
