Best small cities to start a new business

WalletHub - With National Small Business Week approaching and 20% of new businesses failing within the first year, the personal-finance company WalletHub released its report on 2026’s Best Small Cities to Start a Business, as well as expert commentary, to help entrepreneurs find a place where their startup can not only survive but thrive.
 
To determine the most business-friendly small markets in the U.S., WalletHub compared more than 1,300 cities with fewer than 100,000 residents across 18 key metrics. The data set ranges from small business growth rates and the accessibility of financing to investor access and labor costs.
 

Top 20 Small Cities to Start a Business
1. St. George, UT	11. South Bradenton, FL
2. Fort Myers, FL	12. Lake Worth Beach, FL
3. Washington, UT	13. Post Falls, ID
4. Bozeman, MT	14. Midvale, UT
5. Greenville, SC	15. Palm Beach Gardens, FL
6. Cedar City, UT	16. Horizon West, FL
7. Boca Raton, FL	17. East Lake-Orient Park, FL
8. Cheyenne, WY	18. Salisbury, NC
9. Ocala, FL	19. Springville, UT
10. Dover, DE	20. Rapid City, SD

 
Key Stats

• Bozeman, Montana, has the highest number of startups per 100,000 residents, which is 8.7 times higher than in Austin, Minnesota, the city with the lowest.
   
• Wellesley, Massachusetts, has the highest share of the population with at least a bachelor’s degree, which is 14.8 times higher than in Immokalee, Florida, the city with the lowest. 
   
• Kentwood, Michigan, has the most affordable office spaces, which is 6.8 times lower than in Mountain View, California, the city with the least affordable.
   
• Isla Vista, California, has the lowest labor costs (median annual income), which is 9.6 times lower than in Los Altos, California, among the cities with the highest.
   
• West Odessa, Texas, has the longest work week, which is 1.8 times longer than in Isla Vista, California, the city with the shortest.

 Full Report