Utah is a hot place for entrepreneurs. In fact, starting a small business is encouraged. Last year, the Utah Small Business Credit Initiative was established and received federal funding by the Utah Governor’s Office of Economic Opportunity to help small businesses, especially those in small and rural areas.
Living in a small town has advantages when starting a small business. Lower costs associated with less competition can make it cheaper to live, including rent and utilities, and to operate a business. Additionally, due to the close-knit nature of small towns, local businesses often have strong support from residents who like to shop at familiar faces.
WalletHub assesses the business environment in more than 1,300 small cities with populations between 25,000 and 100,000 people, using 18 key metrics to help you start a business, including growth in the number of small businesses, access to investors, and labor costs. We’ve identified the best cities for you.
Best small cities to start a business:
- Cedar City, Utah.
- St. George, Utah.
- Fort Myers, Florida.
- Washington, Utah.
- Post Falls, Idaho.
“Cedar City is a great small city to start a business. According to the same study, it has one of the highest entrepreneurship rates per capita in the country, with the number of small businesses increasing by more than 33% from 2015 to 2021. “This growth is important because it shows that our city has the conditions to keep small businesses afloat, even during these economic times.”
Seven other cities in Utah ranked in the top 30, including six in Utah County: Lehi (8th), Eagle Mountain (11th), and Midvale (14th). (No. 1), American Fork (No. 15), Springville (No. 1) (No. 18), Spanish Fork (No. 26), and Orem (No. 28). When it comes to average growth in the number of small businesses, Utah tied for first in two of her three towns. Washington and St. George.
More and more people are starting their own businesses
In the wake of the pandemic, many people turned their hobbies into businesses, and the number of new businesses created each year has continued to grow ever since. The U.S. Chamber of Commerce announced that the entrepreneurial trend will continue in 2023, with a record 5.5 million new business applications.
According to the chamber’s report, Utah experienced the following growth in 2023:
- The number of new business applications was 71,877.
- 5,608 business formations are predicted for the fourth quarter.
- It is expected that 7.8% of business applications will be made by employers.
Small businesses make up 99.3% of all businesses in Utah. “Utah’s diverse economy, business-friendly environment, and thriving industry make it an excellent investment destination for companies. When deciding where to invest, companies consider the state’s major industries and potential investments.” You have to consider the rate of return,” Score said, highlighting the fast-growing sectors for business growth in the Beehive State.
- sightseeing.
- construction.
- technology.
- e-commerce.
