The Entrepreneur’s Map: Where America’s Small Businesses Thrive
Starting a small business is more than just having a great idea—you’ve also got to plant your venture in the right environment. While you can make it anywhere, some cities stand out for their combination of opportunity, affordability, and support. To help you give your business the best start, we’ve ranked the 20 best American cities to launch a small business, based on factors like unemployment rate, small business density, average wages, and access to funding.
Whether you're a first-time founder or a seasoned business owner eyeing expansion, this list can help you decide where to set your roots—and thrive.
20. Oklahoma City, Oklahoma
City unemployment rate: 2.8%
Percentage of small businesses in city: 26.40%
Average hourly wage: $27.25
Oklahoma City's low unemployment rate and affordable cost of living makes it a great environment for startups. The city's diverse economy supports various industries while the Oklahoma Department of Commerce offers a variety of programs and resources to support businesses, including access to SBA 7(a), 504, and Express loans.
19. Omaha, Nebraska
City unemployment rate: 2.9%
Percentage of small businesses in city: 33.26%
Average hourly wage: $29.34
The state of Nebraska offers programs like the State Small Business Credit Initiative (SSBCI), which gives small business owners the funds they need to invest in job-creating opportunities.
Ron Reiring, Wikimedia Commons
18. West Jordan, Utah
City unemployment rate: 3.1%
Percentage of small businesses in city: 42.27%
Average hourly wage: $22.17
West Jordan's thriving small business sector and reasonable labor costs provide a solid foundation for new ventures. The city's proximity to major markets adds to its appeal and small businesses can benefit from the Utah Small Business Credit Initiative, which aims to improve access to funding for small businesses across Utah.
Tricia Simpson, Wikimedia Commons
17. Fargo, North Dakota
City unemployment rate: 2.1%
Percentage of small businesses in city: 28.08%
Average hourly wage: $28.54
Fargo's low unemployment rate and growing economy supports diverse opportunities for small business owners while the state of North Dakota provides financial packages and tax incentives to help new and expanding businesses.
Ron Reiring, Wikimedia Commons
16. Phoenix, Arizona
City unemployment rate: 3.5%
Percentage of small businesses in city: 76.72%
Average hourly wage: $31.20
Phoenix has a high percentage of small businesses and the city's infrastructure supports various industries. You can access grants through programs like PHXbizGrants, which offers financial assistance to micro and small businesses with 25 or fewer workers.
15. Glendale, Arizona
City unemployment rate: 3.5%
Percentage of small businesses in city: 76.72%
Average hourly wage: $26.67
In addition to a business-friendly atmosphere, Glendale’s strategic location within the Phoenix metropolitan area provides access to a large customer base.
Tony the Marine (talk), Wikimedia Commons
14. Tulsa, Oklahoma
City unemployment rate: 3.0%
Percentage of small businesses in city: 21.31%
Average hourly wage: $26.66
Tulsa has an affordable cost of living and a diverse economy with opportunities across various sectors. The state of Oklahoma also offers a variety of funding opportunities aimed at small businesses owners seeking to start or expand their operations, including SBA loan programs.
Nils Huenerfuerst, Wikimedia Commons
13. Meridian, Idaho
City unemployment rate: 3.6%
Percentage of small businesses in city: 34.71%
Average hourly wage: $26.00
Meridian's has a growing population that also supports the growth of small businesses. Throughout the state of Iowa, there are various small business grants and funding opportunities to support innovation, development, and business expansion efforts.
MeridianIdaho, Wikimedia Commons
12. Cranston, Rhode Island
City unemployment rate: 3.2%
Percentage of small businesses in city: 66.61%
Average hourly wage: $28.00
Cranston's has a high percentage of small businesses and a strategic location within the Northeast corridor that makes it perfect for your small business.
thisisbossi, Wikimedia Commons
11. Sioux Falls, South Dakota
City unemployment rate: 1.5%
Percentage of small businesses in city: 30.00%
Average hourly wage: $27.00
Sioux Falls' has an exceptionally low unemployment rate and the city's growing economy supports a wide variety of startups.
10. Boise City, Idaho
City unemployment rate: 3.2%
Percentage of small businesses in city: 71.4%
Average hourly wage: $28.00
Boise City's vibrant entrepreneurial ecosystem and high percentage of small businesses make it a top choice for startups. The city boasts a business-friendly regulatory climate, and you can benefit from programs like the Idaho Opportunity Fund and the Idaho Small Business Development Center, which offer grants, mentoring, and low-interest loans.
Charles Knowles, Wikimedia Commons
9. Sandy Springs, Georgia
City unemployment rate: 3.8%
Percentage of small businesses in city: 52.7%
Average hourly wage: $30.00
Sandy Springs' has a highly educated workforce and its proximity to Atlanta provides a strategic advantage for your small business. The Georgia Department of Economic Development and Invest Atlanta offer several funding options including microenterprise development loans and innovation grants.
Dennis Matheson from Atlanta, GA, USA, Wikimedia Commons
8. St Petersburg, Florida
City unemployment rate: 3.5%
Percentage of small businesses in city: 60.00%
Average hourly wage: $27.00
St Petersburg’s tax-friendly policies make it a great location for small businesses. The city’s coastal culture draws in tourism and retail entrepreneurs. Florida’s Enterprise Florida program and Pinellas City’s economic development office offer grants, export assistance, and access to funding for small businesses.
Andrew Heneen, Wikimedia Commons
7. Atlanta, Georgia
City unemployment rate: 3.2%
Percentage of small businesses in city: 58.00%
Average hourly wage: $29.00
Atlanta has a diverse economy, vibrant culture, and a major airport that connects businesses to global markets. Georgia offers a range of financing tools including the State Small Business Credit Initiative and the Invest Georgia Exemption crowdfunding rule.
known per ticket, Wikimedia Commons
6. Plano, Texas
City unemployment rate: 3.0%
Percentage of small businesses in city: 50.00%
Average hourly wage: $28.00
The state of Texas offers franchise tax exemptions for new businesses and access to funding through programs like the Texas Product Development Fund.
Mohidshahab, Wikimedia Commons
5. Minneapolis, Minnesota
City unemployment rate: 3.0%
Percentage of small businesses in city: 55.00%
Average hourly wage: $30.00
Minneapolis thrives on diversity and innovation in industries like finance, healthcare, and tech. Through Minnesota DEED, you can get access to numerous grants, including the Emerging Entrepreneur Loan Program.
AlexiusHoratius, Wikimedia Commons
4. Scottsdale, Arizona
City unemployment rate: 2.9%
Percentage of small businesses in city: 76.72%
Average hourly wage: $31.50
Scottsdale’s thriving tourism, health, and wellness industries create the perfect environment to help your small business grow. The city is known for its high-income demographics, and you can benefit from access to regional funding networks and state-level resources like the Arizona Commerce Authority’s Small Business Services.
3. Irvine, California
City unemployment rate: 3.5%
Percentage of small businesses in city: 62.1%
Average hourly wage: $36.00
Irvine is a technology and innovation hub, ideal for entrepreneurs focused on biotech, software, or green energy. Its highly educated population and proximity to major research universities like UC Irvine give businesses access to top talent. California’s CalCAP and IBank programs offer loan guarantees and financing assistance for new ventures.
2. Austin, Texas
City unemployment rate: 3.1%
Percentage of small businesses in city: 63.0%
Average hourly wage: $30.50
Austin leads the nation in startup density and is recognized for its vibrant creative and tech sectors. Known as “Silicon Hills,” Austin provides small business owners with access to funding, an innovation-friendly government, and a strong culture of collaboration. Texas’ Capital Access Program and local grants through the City of Austin help bridge funding gaps.
Stuart Seeger, Wikimedia Commons
1. Salt Lake City, Utah
City unemployment rate: 2.7%
Percentage of small businesses in city: 45.8%
Average hourly wage: $27.00
Salt Lake City tops the list thanks to its low unemployment rate, high business formation rate, and robust state-level financial support. Utah’s Governor’s Office of Economic Opportunity offers targeted grants, training programs, and tech commercialization funding. Salt Lake City also features a collaborative startup ecosystem anchored by Silicon Slopes.
Garrett from Salt Lake City, Wikimedia Commons
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