

John Cougar Mellencamp famously sang about the joys of growing up in a small town, and for many would-be small business owners, starting a business in a small town has a lot of the same appeal. Are you tired of running the rat race in your corporate, big-city job?
If you fantasize about moving to a small, close-knit community and starting a business, you’ll want to check out the list of the best small cities to start a business that WalletHub recently compiled.
Starting a business in a small town has both pros and cons. For example, the study’s authors note:
The study compared more than 1,200 cities with populations between 25,000 and 100,000 people, evaluating them based on three factors:
Overall, Holland, Michigan, topped the list, followed by Carbondale, Illinois; Springville, Utah; East Chicago, Indiana; and Jefferson City, Missouri, rounding out the top five.
Does that mean you should pack your bags and move to the Midwest? Not necessarily. Cities with a high overall score sometimes score low in one of the three areas. For example, while Holland, Michigan, has a favorable business environment, it did not rank as well in terms of access to resources.
What does your startup need to succeed? For example, if you want to start a business that relies on people physically coming into your location, such as a restaurant, the cost of renting space and the availability of a sufficient customer base will be big factors in your decision. On the other hand, if you’re starting a technology business that will serve clients all over the country remotely, a bigger concern would be the availability of skilled employees you can hire as your business grows.
Your business will be more visible in a small town than in a larger community, so any mistakes you make will be magnified and can be harder to correct. What’s more, just because you currently own the only Mexican restaurant in town doesn’t mean that will last. Put as much effort, heart, and energy into your small-town startup as you would anywhere else, and the community will reward you with success.
Take a closer look at WalletHub’s top small towns for starting a business, including breakdowns by category. Need more assistance deciding on the perfect startup location? Your SCORE mentor can help you assess your options and create a plan for success.
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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.