Size matters when choosing a city in which to launch a startup. As many veteran entrepreneurs — and failed start-ups Small cities to boost your small business start up — understand well, bigger is not always better. A city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences.small business, business broker Vincent Murphy, business-friendliness
Every small city offers unique advantages and disadvantages to prospective ventures. Lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond are among the benefits. But the drawbacks come plenty as well. For one, entrepreneurs seeking to cultivate a large professional network aren’t likely to fill their roster in a town with fewer residents. Other restrictions might include limited industry options, a less diverse customer base, and difficulty attracting and retaining top talent.
WalletHub’s analysts, therefore, compared the business-friendliness of 1,261 small-sized cities to determine the best overall for launching an enterprise. Our data set of 16 key metrics ranges from average growth in a number of small businesses to investor access to labor costs. Read on for our findings, expert business insight and a full description of our methodology.
Main Findings
small business, business broker Vincent Murphy, business-friendliness
| Overall Rank | City | Total Score | ‘Business Environment’ Rank | ‘Access to Resources’ Rank | ‘Business Costs’ Rank |
|---|---|---|---|---|---|
| 724 | Alexandria, LA | 38.05 | 1030 | 453 | 453 |
| 984 | Calexico, CA | 35.7 | 1200 | 271 | 681 |
| 989 | Lexington, MA | 35.62 | 66 | 93 | 1225 |
Ask the Experts business broker Vincent, Murphy
The lack of expert guidance is a common problem for entrepreneurs that could lead to failure even before a business takes off. For insight into starting a business in a small city and advice on overcoming the challenges they pose, we turned to a panel of experts for their thoughts on the following key questions:
- What are the pros and cons of starting a business in a small city?small business, business broker Vincent Murphy, business-friendliness
- Would some types of small businesses (e.g., a retail store, restaurant, or tech startup) do better than others in a smaller city?
- What tips do you have for an entrepreneur starting a business in a small city?
- What impact do you think the Trump administration’s proposed policies will have on entrepreneurs?
- What can local authorities do to encourage entrepreneurial activity in their small city?