South, west draw highest marks for places to start a business

Bozeman, Montana, has the highest number of startups per 100,000 residents, which is 14.7 times higher than in Salisbury, Maryland, the city with the lowest. (Courtesy photo)

With National Small Business Week approaching and many employers still struggling to hire new workers, the personal-finance website WalletHub today released its report on 2025's Best Small Cities to Start a Business, 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 accessibility of financing to investor access and labor costs.

Key Stats

• Bozeman, Montana, has the highest number of startups per 100,000 residents, which is 14.7 times higher than in Salisbury, Maryland, the city with the lowest.
• Los Altos, California, has the highest share of the population with at least a bachelor's degree, which is 15.6 times higher than in Coachella, California, 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 10.2 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.

To view the full report and your city's rank, please visit:
https://wallethub.com/edu/best-small-cities-to-start-a-business/201800