Looking to start a small business? Discover 22 U.S. cities where local entrepreneurs are not just surviving but thriving.
1. Austin, Texas
Austin is known for its vibrant tech scene and supportive small business community. Texas offers no state income tax, making it easier for business owners to reinvest profits. The city’s booming population and business-friendly environment continue to make it a prime spot for entrepreneurs.
2. Nashville, Tennessee
Nashville’s growth has skyrocketed, driven by its thriving music, healthcare, and tech industries. Tennessee has no state income tax, and the cost of living remains relatively low compared to other major cities, providing small businesses with an affordable environment to grow.
3. Denver, Colorado
Denver’s outdoor lifestyle and booming tech industry attract talent and startups alike. While Colorado has a flat state income tax rate of 4.4%, Denver’s access to venture capital and a growing population make it a hotspot for small businesses to thrive.
4. Raleigh, North Carolina
Raleigh benefits from its proximity to Research Triangle Park, a major innovation hub. North Carolina’s low corporate tax rate (2.5%) and lower-than-average cost of living make it an appealing location for small businesses, particularly in tech and biotech sectors.
5. Salt Lake City, Utah
Salt Lake City offers a strong economy with low unemployment and a growing tech sector. Utah’s flat 4.85% state income tax rate, combined with affordable real estate, makes it an attractive city for small businesses looking to scale.
6. Boise, Idaho
Boise has become a surprise hit for small businesses, thanks to its affordable cost of living and low corporate taxes. Idaho’s business-friendly policies, coupled with a growing population, provide a fertile ground for new ventures, particularly in the tech and agriculture sectors.
7. Miami, Florida
Miami’s diverse economy and growing tech scene make it a great place for small businesses. Florida’s lack of state income tax and business-friendly environment help entrepreneurs keep more of their earnings, while the city’s international connections support global business opportunities.
8. Charlotte, North Carolina
Charlotte is a financial hub that has seen a surge in small business growth, particularly in finance, healthcare, and energy. North Carolina’s low tax burden and affordable cost of living provide a supportive environment for new businesses.
9. Phoenix, Arizona
Phoenix’s booming population and affordable cost of living have turned it into a thriving city for small businesses. Arizona’s relatively low income tax rates (ranging from 2.59% to 4.5%) and low corporate taxes make it a prime spot for entrepreneurs.
10. Portland, Oregon
Portland is a haven for creative small businesses, particularly in the food, beverage, and outdoor gear industries. Oregon’s lack of a state sales tax is a significant perk, although the state’s high income tax (up to 9.9%) can be a challenge. Still, the city’s supportive community and emphasis on sustainability draw in many entrepreneurs.
11. Dallas, Texas
Dallas’s robust economy, driven by finance, tech, and manufacturing, provides a strong foundation for small businesses. With no state income tax in Texas and a relatively low cost of living compared to other major metros, Dallas offers a financially appealing environment for entrepreneurs.
12. Indianapolis, Indiana
Indianapolis has become a hub for tech startups and healthcare-related businesses. Indiana’s corporate tax rate of 4.9% is one of the lowest in the nation, and the state’s low cost of living makes it a top choice for small business owners looking to maximize their profits.
13. Minneapolis, Minnesota
Minneapolis offers a balanced economy with strengths in healthcare, finance, and retail. While Minnesota has a higher state income tax (up to 9.85%), the city’s strong talent pool and supportive small business ecosystem make it an attractive place for entrepreneurs.
14. Atlanta, Georgia
Atlanta’s diverse economy and status as a transportation hub make it a thriving environment for small businesses. Georgia’s low corporate tax rate of 5.75%, combined with affordable real estate, provides a strong foundation for business growth.
15. Las Vegas, Nevada
Las Vegas is becoming more than just a tourism hub—it’s also a growing spot for small businesses. Nevada’s lack of state income tax and affordable business licensing fees attract entrepreneurs, while the city’s low cost of living compared to other major markets makes it easier to get started.
16. Columbus, Ohio
Columbus is an emerging hub for tech startups, healthcare, and logistics. Ohio’s low cost of living and moderate state income tax rate (ranging from 0% to 4.797%) make it a fertile ground for small businesses to thrive.
17. San Diego, California
San Diego’s biotech and military industries fuel its economy, offering a strong support network for small businesses. While California’s income tax is among the highest in the nation (up to 13.3%), San Diego’s quality of life and innovation-driven economy attract entrepreneurs willing to navigate the state’s higher taxes.
18. Oklahoma City, Oklahoma
Oklahoma City boasts a low cost of living and affordable real estate, making it easier for small businesses to thrive. Oklahoma’s corporate tax rate is a competitive 4%, and the city’s supportive community and growing economy make it an appealing spot for entrepreneurs.
19. Richmond, Virginia
Richmond’s economy is bolstered by finance, healthcare, and manufacturing, with a supportive environment for small businesses. Virginia’s corporate tax rate of 6% and its proximity to major East Coast markets make Richmond an attractive option for entrepreneurs.
20. Tampa, Florida
Tampa’s affordable cost of living and growing economy make it a hotspot for small business growth. Florida’s lack of state income tax, combined with Tampa’s strong tourism and healthcare sectors, provides a solid foundation for entrepreneurial success.
21. Madison, Wisconsin
Madison is known for its education and healthcare industries, attracting startups and small businesses alike. Wisconsin’s state income tax ranges from 3.54% to 7.65%, but the city’s supportive community and access to talent from the University of Wisconsin make it a strong environment for small business growth.
Entrepreneurship: A Thriving Path Forward
These 22 cities offer fertile ground for small businesses to take root and grow. If you’re thinking about starting a business, these cities provide the perfect environment for turning your entrepreneurial dreams into reality.
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