A new report from Wallet Hub has listed the best small cities in the United States for starting a business, and Southern Utah has claimed three of the Top 5 spots in the ranking. 

Wallet Hub Analyst Cassandra Happe detailed the benefits of starting a business in a small city.  

Happe said, “The benefits of starting a business in a small city include lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond. But there are drawbacks, too. Entrepreneurs who want to build a large professional network aren’t likely to make as many connections in a town with fewer residents. Other restrictions might include limited industry options, a less diverse customer base, and difficulty attracting and keeping top talent.” 

Wallet Hub compared more than 1,300 small cities across the country with 18 key metrics in mind. While I won’t list all 18 factors, you can read the full rankings on Wallet Hub with all the fancy numbers you could ask for.  

Coming in at No. 4 was Washington City. While the article doesn’t go deep into the reasoning behind the city’s ranking, the total score awarded to Washington is 61.93. Business Environment rank is 10, access to resources is rank 132, and the business costs is rank 437. 

St. George took the No. 2 spot with some of the factors ranked as the best in the country.  

The Wallet Hub article said, “St. George, UT, is the second-best small city for starting a business, ranking at the top of the country for both startups per capita and growth in the number of small businesses (over 42% between 2015 and 2021).” 

The article also says St. George has very cheap office space available set around $10.73 per square foot. For comparison, the most expensive city charges about $60 per square foot. Short commutes, high annual job growth rate, and other small benefits added to the high marks for St. George. 

Cedar City took the No. 1 spot with a score of 67.18 and some of the highest marks across the Wallet Hub’s key metrics. 

The article said, “Cedar City, UT, is the best small city to start a business. It has one of the highest rates of startups per capita, as well as the fourth-highest growth in the number of small businesses between 2015 and 2021, at over 33%. This growth is significant because it shows that the city has the conditions to keep small businesses afloat even during this period of economic difficulty.” 

Very short commutes, light traffic, and high annual employment growth were also large reasons for Cedar City taking the top spot. 

In conclusion, Southern Utah seems to be the cat’s pajamas for those looking to step into the world of business...even if the housing costs are a big issue. 

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