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9 Best US Cities to Start a Small Business In

Many people dream about opening their own business, but the big question of where to actually set up shop is still one that is heavily debated. There are close to 19,500 cities in the USA so narrowing it down to a short list is the best place to start. Some of these have a dense population, and other areas have only 1,000 or so residents to speak of, therefore this decision is a critical one that will influence the success rate of your venture. Here are the nine best US cities to start a small business in.  

Colombus, Ohio 

Home to Colombus State University, this city is a fantastic place to start a small business. There is access to a large talent pool owing to the high presence of young professionals and fresh graduates looking for a professional opportunity, and a relatively low cost of living when compared to the rest of the state. This means there are smaller rent prices across the city and lots of people out and about with a higher amount of income to spend as well. If you are thinking of getting an Ohio LLC off the ground, don’t hesitate to get advice from official sources, because there are plenty of tax credits and grants for business expenses to explore.  

San Francisco, California 


While California is associated with all things movies and celebs, this is actually the biggest reason why it is a hot spot for small businesses and general innovation. There are a number of funds for new entrepreneurs as of 2017, and a highly supportive online information hub to get things off the ground as well. There are over 100,000 small and large businesses currently operating in the area, and more than enough customers to keep them viable. You could become one of 4.2 small business owners in California state and make your dream become a reality.  

San Jose, California 

With such a high number of business operations in California, there is more than enough space for a second city on this list and San Jose is the number two spot for anyone with this trajectory in mind. Close to Silicon Valley, there are thousands of opportunities to make a name for yourself here and an undeniably booming economy to complement the setup too. The only thing to note is that the cost of living is higher than in other cities in different states, but this can work to your advantage if your idea takes off.  

Seattle, Washington 

Seattle is an ever-popular spot to start a small business and there are approximately 100,00 people already active on the scene. There has been substantial growth in the economy in the last decade, and it is only set to move further up in the future. It was the first place to ever host a Starbucks, which is now a global company with shops in major cities all around the world so you never know what will come your way if you opt for the Emerald City 

Denver, Colorado 

It is always great to find a spot with low unemployment rates, and Denver delivers with a reported percentage of under 3%. This means that the economy is strong and well supported, allowing for plenty of opportunity to also grow and expand as you work through the initial setup process. If you resonate with the local people and tourists, your niche will be well supported. This city is home to many clothing stores, boutiques, quirky fronts, and eateries, but there is room for just about anything. Just make sure you have an original idea and a solid business plan to back it up.  

Nashville, Tennessee 

In Nashville, there is no obligatory state income tax scheme, which makes it financially viable to start a small business and project realistic growth. The tax breaks are not the only appealing factor though, as Nashville is well-known as a hotspot for music and tourists as well, which is a winning combination for anyone looking to start their own journey somewhere. Pick the right area, and really assess your budget to offset the slightly higher costs of living and rental prices across the more populated areas.  

Austin, Texas 


Small businesses in Texas can and do thrive on a yearly basis, especially in places like Austin with more residents and visitors than a lot of other areas combined. There is a niche vibe here, and it is something that you may have to find a way to fit in with. Yet, when you figure that bit out, there is so much room for authentic growth that it feels like such an obvious choice. The cost of living is low, and the number of residents is high (966,292 people) so this combination sets the perfect stage for a small business to be well supported.  

Boston, Massachusetts 

Boston is home to a lot of investment and thousands upon thousands of already established and successful small business owners. There are over 100,000 people already living out their dream and a number of professionals that boost the rate of customer engagement and spending. There is a dedicated portal for small business owners and fresh startups, so you have access to all the information you could possibly need to get things right.

Portland, Oregon 

Under three hours away from Seattle, the two places are frequently thought of as similar, and they do share traits. The most relevant point here is that they are both fantastic spots for small businesses to thrive. Portland has nearly 650,000 residents and a hard-to-ignore recreational scene which any entrepreneur hopeful will fit right in with. Help is never far away either, as there are hundreds of classes hosted by local government to assist business-focused individuals to realize their potential and grow their craft into success. This level of support is really wonderful and has projected many an establishment to new heights.

The choice of where to set up your business is a question that requires research and time. Line up the options and consider the support on offer, cost of living, number of residents, and niche density in the area and use this information to make the best choice possible.

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