This Southwest Florida city ranks as one of the best in U.S. to start small business

Posted by Admin April 23, 2024 Bussiness

Does size matter when it comes to starting a small business? In other words, the bigger the city the better chance of success for entrepreneurs?

Not necessarily.

In fact, for entrepreneurs looking to start a small business in a small city, a study by WalletHub identified Fort Myers as being one of the best locations in the U.S. to do that. Fort Myers is ranked No. 3 and one of only two Florida cities to make the Top-10. Altamonte Springs (Central Florida) is No. 9.

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What to know: Fort Myers a ‘best place’ to start small business

To determine the best small cities to start a business, WalletHub compared the business-friendliness of more than 1,300 small-sized cities. WalletHub’s data set of 18 key metrics ranges from the growth rate of the number of small businesses to investor access and labor costs.
According to WalletHub, a city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s personal preferences and the type of business they’re starting. The best cities can even help new businesses survive economic shocks such as pandemics or inflation.

Did you know: Fort Myers a ‘best place’ to start small business

According to the study, Fort Myers has one of the highest numbers of investors per capita in the country, which improves the chances of startups finding the funding they need. This investment access allowed the number of small businesses in the city to grow by over 21% between 2015 and 2021.
Fort Myers also ranks in the top 100 cities (out of more than 1,300) for office-space affordability, at $12.20 per square foot, and for the number of startups per capita. Since current businesses are thriving and have access to good capital and low building costs, it’s a great time for startups to get a piece of the pie.

What they are saying: Best small cities to start a business

“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.” − Cassandra Happe, WalletHub analyst

Who is No. 1: Best small city to start a business

According to the WalletHub study, Cedar City, Utah 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.

Cedar City has the fourth-lowest average commute time, too, at just 13 minutes, so people can spend less time sitting in traffic and more time being productive. It ranks in the top 100 cities (out of more than 1,300) when it comes to annual employment growth and working-age population growth. There will be plenty of people for new businesses to hire in the future.