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Located 26 miles north of Atlanta, this city boasts 15 businesses per 100 people, 65% higher than the average of all the cities analyzed. Fourteen miles from Minneapolis, this small city is anchored by manufacturer Carlson Industries, the 83rd largest private company in the US.
There is no room in business today for entrepreneurs who are worried about how smart they are, how they'll look or what a mistake will mean. Best cities for small business in America: SurveyCost of doing business, taxes and talent pool major factors in assessing ecosystems.
The annual Best Small Business Cities in America Study ranking of 25 cities is based on a weighted average of data on Biz2Credit's customers across the country. Biz2Credit analyzed 12,000 businesses with fewer than 250 employees from across the country.
The Riverside-San Bernardino area shot to the top spot after scoring in the top five in average credit score, average annual revenue, number of employees and the BizAnalyzer score, which takes into account local economic factors, such as the cost of doing business and tax rate.
According to the survey, small businesses in Riverside-San Bernardino had average annual revenues of $1,400,960, ahead of the No. Nathan Sklar, a health-care entrepreneur, recently expanded his business operations from New York City to Riverside, California. While overhead for small businesses is not low in Chicago, it is not as steep as in other major cities. With its tech hub, Silicon Alley, thriving, New York moved up the list to third place, from seventh last year. Located about 26 miles north of Atlanta, this city of nearly 60,000 ranks as the top small city for businesses because of its ability to attract companies both large and small. Delaware’s largest city also has one of the strongest local business communities in the country.

The first of two Wisconsin cities in the top 10, this community of 70,775 has a core of businesses that has made it a magnet for engineers, scientists and other high-skilled workers. This Orange County city of 86,000 not only has the largest population in the top 10, but it also has the highest concentration of businesses, at 21.33 businesses per 100 residents. A strong, established business community and a healthy local economy make Greenville one of the nation’s best places to start a business. Think again.Top lines thrive in small cities, according to a report released today in a partnership between personal finance site NerdWallet and Entrepreneur Media.
It emerged as the best small-business city in America in an annual ranking conducted by Biz2Credit, a leading online lending platform for small business based in New York City.
It looks at the health of small businesses in each metro area, the rate of small-business creation and the economic ecosystem for entrepreneurs, including the cost of doing business, tax climate and local talent pool.
The ecosystem for growth companies is strong, since it has such resources as incubators, accelerators and co-working spaces, as well as a Shop Riverside campaign to promote local businesses. It can take small businesses more than a month to get a business license in Chicago because of bureaucracy, according to Jeff Carter, manager at West Loop Ventures, a Chicago-based venture fund focused on seed and series A investments. California had a total of six cities among the top 25, while Texas and Florida had three each. An entrepreneur must make the right moves when opening a business — be it creating a strong business plan or locking up a source of funding. Eight of the top 10 cities are near major cities, which allow companies to operate within a smaller, close-knit business community, while still having access to cities such as Atlanta, Seattle and Washington, D.C. Although multinationals such as McKesson and Hewlett-Packard have satellite offices in Alpharetta, the Alpharetta Chamber of Commerce also supports a strong local business environment. Troy-based Automation Alley, a business accelerator and association of tech companies, has helped support the growth of businesses in industries from defense to infrastructure.

Multinational companies have a strong local presence, such as Michelin and GE’s Power and Water division, but smaller businesses thrive in Greenville as well.
In the Windy City, an abundant technology talent pool has helped drive the growth of entrepreneurship, according to Ted Devine, CEO of Insureon, a small-business insurance provider based there that has grown to 183 employees since it was founded in 2000. Newport Beach, California, another top 10 city, has traditionally been a center for financial services. Of the city’s businesses, 42.18% have paid employees, the second-highest proportion in the top 10, pointing to a strong core of existing businesses that hire and foster growth in the community.
Entrepreneurs are also attracted by the local economy of Troy, where the median annual income of $72,333 is complemented by a median housing cost of $1,366 a month, which means a resident would plan for about 22.2% of income for housing, the second-lowest proportion in the top 10 cities. With such prominent companies, it isn’t hard to attract new entrepreneurs to Waukesha, though the City of Waukesha Chamber of Commerce is a driving force in bringing small businesses to this suburban Milwaukee city.
Over 37% of businesses have paid employees, which is 45% higher than the 25.82% average of all small cities analyzed in this study. Although the city in Silicon Valley is still a hotbed of technological innovation, the high cost of doing business there has hurt its ranking. Entrepreneurs in Delaware, the second-smallest state in the country, will find support at the Delaware State Chamber of Commerce, which helps businesses in Wilmington and the rest of the First State. Entrepreneurs are attracted to Greenville’s location, midway between the region’s economic powerhouses of Atlanta and Charlotte, as well as its low cost of living: the median monthly housing cost of $808 is the second lowest in the top 10.

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