Dover, Delaware, was ranked 10th among small cities for starting a business.
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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 nearby cities.
15. Palm Beach Gardens, FloridaNearby Palm Beach, Florida, about 10 miles south of Palm Beach Gardens.
Felix Mizioznikov/Shutterstock
Business environment rank (out of 1,334 small cities): 5
Access to resources rank (out of 1,334 small cities): 101
Business costs rank (out of 1,334 small cities): 707
Palm Beach Gardens borders North Palm Beach and has a population of over 63,000, per 2024 Census estimates.
14. Midvale, UtahNearby Salt Lake City, Utah, just over 10 miles north of Midvale.
Robert Harding Video/Shutterstock
Business environment rank: 137
Access to resources rank: 16
Business costs rank: 313
Located about 12 miles south of Salt Lake City, Midvale is home to 36,000 residents and hosts around 1,300 businesses. CHG Healthcare, a healthcare workforce company that says it provides care to over 20 million patients, is headquartered there.
13. Post Falls, IdahoBridge over the Spokane River in Post Falls, Idaho.
RozenskiP/Shutterstock
Business environment rank: 16
Access to resources rank: 304
Business costs rank: 302
Post Falls sits just east of Spokane, Washington, on the Idaho-Washington border. Businesses in Post Falls are entitled to state incentives, such as energy conservation rebates and a tax exemption on $100,000 of personal property, according to the city's website.
In 2024, the city had an estimated 45,800 residents, per the Census.
12. Lake Worth Beach, FloridaArtists participate in a street painting festival in Lake Worth Beach, Florida.
Patrick Messier/Shutterstock
Business environment rank: 14
Access to resources rank: 540
Business costs rank: 259
Just south of Palm Beach, Lake Worth Beach has what it calls a "lively downtown" for its roughly 44,000 residents, per 2024 Census estimates.
11. South Bradenton, FloridaNearby Bradenton Beach sits on Anna Maria Island on Florida's Gulf Coast.
real Michael Gingerich/Shutterstock
Business environment rank: 60
Access to resources rank: 926
Business costs rank: 133
South Bradenton, which is technically a census-designated place in Manatee County, sits on Florida's Gulf Coast and has roughly 26,000 residents.
10. Dover, DelawareDover, Delaware.
Jacob Boomsma/Shutterstock
Business environment rank: 6
Access to resources rank: 62
Business costs rank: 854
In a state where 66% of Fortune 500 companies are incorporated, Dover was found by WalletHub to have a very business-friendly environment. The city, which has about 40,000 residents, is the second largest in the state.
9. Ocala, FloridaOcala, Florida.
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Business environment rank: 142
Access to resources rank: 95
Business costs rank: 115
A fast-growing small city in central Florida, Ocala had a population of about 70,000 residents in 2024 and appeared on Forbes' 2016 "The 10 Best Cities for Future Job Growth" list.
8. Cheyenne, WyomingCheyenne, Wyoming.
Jacob Boomsma/Shutterstock
Business environment rank: 7
Access to resources rank: 698
Business costs rank: 111
Wyoming's most populous city, with over 65,000 residents, sits near the state's southern border. Though Cheyenne received a high business environment ranking in WalletHub's report, the Wyoming Tribune Eagle reported that the state doesn't offer a general business license, and fees to obtain licenses at the municipal level in Cheyenne are difficult for some business owners to navigate.
7. Boca Raton, FloridaBoca Raton, Florida.
FotosForTheFuture/Shutterstock
Business environment rank: 23
Access to resources rank: 6
Business costs rank: 744
The city of around 100,000 residents is located between Palm Beach and Miami.
6. Cedar City, UtahCedar City, Utah.
Abdulelah Fakhrani/Shutterstock
Business environment rank: 13
Access to resources rank: 197
Business costs rank: 159
The 40,000-resident city is the most populous in Iron County, Utah, which reported the third-largest job growth rate in the state in the 2025 fiscal year, according to the city.
5. Greenville, South CarolinaGreenville, South Carolina.
Kevin Ruck/Shutterstock
Business environment rank: 102
Access to resources rank: 7
Business costs rank: 181
Greenville has a population of around 75,000 residents, according to 2024 Census estimates. Per the city, it's home to over 40 Fortune 500 companies, and more than 100 companies are headquartered there,
4. Bozeman, MontanaBozeman, Montana.
Framalicious/Shutterstock
Business environment rank: 2
Access to resources rank: 44
Business costs rank: 519
The fast-growing Bozeman had a population of about 58,000 in 2024, per the Census.
3. Washington, UtahWashinton, Utah.
Andrew Dale/Shutterstock
Business environment rank: 4
Access to resources rank: 242
Business costs rank: 238
WalletHub found that the city of 35,000 residents has a high rate of startups per capita and saw nearly 42% growth in the number of small businesses from 2017 to 2023.
2. Fort Myers, FloridaFort Myers, Florida.
Narthurs/Shutterstock
Business environment rank: 44
Access to resources rank: 4
Business costs rank: 191
Fort Myers has one of the highest numbers of investors per capita in the country, WalletHub reported. The city has just under 100,000 residents, per the 2024 Census.
1. St. George, UtahSt. George, Utah.
Nicholas J Klein/Shutterstock
Business environment rank: 1
Access to resources rank: 130
Business costs rank: 153
Neighboring Washington, Utah, which ranked in third place, St. George came top in WalletHub's study largely for its cheap office spaces and short commute times. The city of around 100,000 residents saw a similar small-business growth rate as Washington, Utah.
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