The state of Utah dominates a new list of small cities that are the best in the nation for starting a business. The annual list, “2023’s Best & Worst Small Cities to Start a Business,” was recently released by personal-finance website WalletHub. The report shows that among the top small cities in the U.S. for startups, 84 are located in Utah. Layton, Utah is ranked 205 – the top 15 percent — out of 1,334 US cities.
WalletHub’s editors say a city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences. Some small city benefits include lower overhead costs, stronger relationships with customers, and the potential to become a big fish in a little pond.
According to WalletHub, “the best cities can help new businesses survive economic shocks such as the COVID-19 pandemic and inflation. It’s hard enough owning a business even under normal conditions, when 20% of new businesses fail within the first two years and 45% fail during the first five.”
To determine the best small cities list to start a business, WalletHub compared the business-friendliness of 1,334 small-sized cities. Their data set of 18 key metrics ranges from average growth in number of small businesses, to investor access, to labor cost. For the sample, WalletHub editors chose cities with a population between 25,000 and 100,000 residents. Layton, Utah’s current population is about 86,000 and consistently growing, thanks to a thriving economy, steady growth in business and career opportunities, and vibrant culture.