The top 10 friendliest cities for small business

‹

The 10 friendliest cities for small business

Marc Romanelli | Getty Images

Owning your own business can be tough no matter where you live, but choosing an entrepreneur-friendly city can make a big difference in achieving success.
Every year, Thumbtack ranks the U.S. cities that are the friendliest for entrepreneurs. For the 2015 list, 95 U.S. cities were ranked on 11 metrics, including ease of starting a business, tax codes, and training and network programs. The survey used data from nearly 18,000 small business owners across the U.S.
Read on for the 10 U.S. cities that rank as the friendliest in which to own a small business and to see the unique strengths and weaknesses of the top small business locales across the country.
— By CNBC's Sarah Whitten
Updated 15 March 2016
10. San Antonio

Richard Cummins | Getty Images

There's more than one reason to remember the Alamo.
San Antonio fell out of the top 10 list in 2014, but it's back in this edition. It's ranked highly since Thumbtack began surveying in 2012, and rejoined the top 10 because of strong zoning and land-use regulations, as well as helpful training and networking programs for entrepreneurs.
The city still needs to work on hiring of new employees, however, as respondents rated this factor lower in 2015 than in the previous two years.
Top 3 strengths
Training and networking: No. 7
Environmental regulations: No. 9
Tax code rank: No. 9
Biggest weakness
Ease of hiring: No. 44
9. Boulder, Colorado

Chris Rogers | Getty Images

It's a first for Boulder, Colorado, and the city must be on a Rocky Mountain high after beating out state capital Denver and Colorado Springs for a spot in Thumbtack's top 10.
Boulder scored highly in ease of starting a business and on health and safety regulations.
Its weaknesses include ease of hiring, and zoning and land use laws.
Top 3 strengths
Ease of starting a business: No. 13
Health & safety: No. 32
Licensing regulation: No. 34
Biggest weakness
Zoning: No. 89
8. Fort Collins, Colorado

Source: Wikipedia

Colorado is clearly a state that needs to be on the radar of entrepreneurs, with Fort Collins ranking right above Boulder.
Fort Collins' overall friendliness ranked No. 1 among all cities when it comes to training and networking programs.
However, like Boulder, ease of hiring remains a major weakness, as well as health and safety laws and environmental regulations.
Top 3 strengths
Training & networking: No. 1
Ease of starting a business: No. 17
Licensing regulation: No. 31

Biggest weakness
Zoning: No. 87
7. Houston

MedioImages | Photodisc | Getty Images

Houston has been a part of the friendliest small business cities ranking since 2013, when it peaked at No. 3, but slipped a little in 2015. The city remains a top locale for starting a business and scores highly for its business friendly local government.
Houston has seen a dip in its rank for training and networking programs aimed at entrepreneurs.
Top 3 strengths
Ease of starting a business: No. 4
Overall regulations: No. 6
Tax code rank: No. 6
Biggest weakness
Training & networking: No. 26
6. Nashville, Tennessee

Malcolm MacGregor | Flickr | Getty Images

Like several of the cities in the top 10, Nashville has its work cut out for it building a strong networking and training program for small businesses, but the home of country music has seen a boost in job growth and business regulations since 2014.
The city is a tax-friendly location and has a highly involved local government, which earned it a No. 6 ranking in 2015.
Top 3 strengths
Ease of starting a business: No. 11
Tax code rank: No. 12
Licensing regulation: No. 12

Biggest weakness
Training & networking: No. 71
5. Knoxville, Tennessee

Richard Cummins | Getty Images

About 200 miles east of No. 6 city Nashville is Knoxville, which has the second-highest rating for zoning regulations and friendliness of local government when it comes to employment, labor and hiring.
The city has a weak training and networking program for small businesses, ranking No. 84 for this metric.
Top 3 strengths
Ease of starting a business: No. 1
Employment, labor & hiring: No. 2
Zoning regulations: No. 2

Biggest weakness
Training & networking: No. 84
4. Austin, Texas

Elizabeth W. Kearley | Getty Images

One of four Texas cities to grace the top friendliest cities list, Austin held the No. 1 slot for the last three editions.
The city has seen a decline in zoning, licensing and health and safety regulations, leading to its drop from the top spot.
Despite this downturn, Austin remains one of the strongest cities to start a business and for entrepreneurial programs.
Top 3 strengths
Training & Networking: No. 8
Ease of starting a business: No. 9
Tax Code Rank: No. 23
Biggest weakness
Employment, labor & hiring: No. 50
3. Richmond, Virginia

Andrew Harrer | Bloomberg | Getty Images

Richmond is a city on the rise. It has seen an exponential rise in confidence for job creation and training programs since 2013 and shows few signs of slowing down.
Top 3 strengths
Health & Safety: No. 1
Ease of hiring: No. 2
Training & networking: No. 4
Biggest weakness
Zoning: No. 19
2. Dallas

Kanonsky | Getty Images

Dallas has been a top contender on Thumbtack's list of friendliest cities since 2012. While respondents considered hiring to be difficult, Dallas remains one of the best places to start a business and for environmental regulations.
Top 3 strengths
Employment, labor & hiring: No. 1
Overall regulations: No. 2
Tax code rank: No. 3
Biggest weakness
Training & networking: No. 23
1. Manchester, New Hampshire

Denis Jr. Tangney | Getty Images

Surprised? Manchester, New Hampshire, ranks in the top percentile for job creation, business growth and licensing regulations.
While its training and networking programs for entrepreneurs could use some work, this New England city is the friendliest city for small businesses.
Top 3 strengths
Licensing regulations: No. 1
Ease of starting a business: No. 2
Tax code rank: No. 2
Biggest weakness
Training & networking: No. 28

›

15 great companies for parents	Start-up community’s fight with the Trump administration intensifies	Under the radar jobs that pay over $100,000	Here's what happens if you don’t pay off your credit card debt
5 weird things that might happen at your next job interview	The 25 highest-paying jobs in America	Suzy Welch: The 2 traits that are guaranteed to get you promoted	13 annoying words and phrases keeping you from getting hired
The 10 best universities for veterans	The best US cities for millennials are in the Midwest and the South, study finds	8 ways to get rich without leaving the couch	The 10 NFL teams whose games give you the best bang for your buck
Hate your new job? Here’s how to return to your old job	5 ways to become debt-free from real people who paid off thousands	The top 25 cities offering jobs and affordable housing	Why California is investing over $200 million in vocational education
How Oprah Winfrey, Venus Williams and other celebrities are addressing the pay gap	Students from these 10 colleges graduate with the least debt	Graduates from these colleges earn the highest salaries in every state	10 must-read books for explosive success
Getting back to work in Houston after Harvey: Wet walls, ruined equipment, helping workers	4 job interview mistakes hiring managers will eliminate you for, according to LinkedIn	This is a far better (and less stressful) way to reach your big goals	4 types of resumes that'll get your foot in the door
Here's the worst money advice Sallie Krawcheck says she ever heard	5 things to consider before going to graduate school	How to write a work email that doesn't make people hate you	5 ways to encourage your team to be more proactive
5 strategies to help you land your next job	3 things to know about Rosalind Brewer, Starbucks' first female and African-American COO	What the Industrial Revolution really tells us about the future of automation and work	Why starting a book club with your co-workers can help you be more successful
The science and design behind Apple's innovation-obsessed new workspace	4 ways to stop being taken advantage of at work (without losing respect)	With wages finally up, Americans are earning more than ever	5 science-backed reasons why readers do better in their careers
What your references should say about you	NASA to teenage Hillary Clinton: 'Sorry, little girl, we don't accept women into the space program'	The sneaky reason why the new iPhone X costs $999 instead of $1,000	Why Trump suspended an Obama administration wage gap initiative
Sheryl Sandberg's warning to Hillary Clinton: 'They will have no empathy for you'	Here are all the things you could spend $999 on instead of an iPhone X	How I survived and thrived in Apple's legendary environment of super-secrecy	Mark Cuban: Tilman Fertitta ‘got a bargain’ buying the Rockets for $2.2 billion
Why Apple’s little-known third co-founder sold his 10% stake for $800	How to write the perfect cover letter	16 tips for building an online personal brand	Here's how much money American women earn at every age
The 5 best liberal arts colleges in the US	The 7 best universities in the US	The 10 worst college majors to choose if you want a high-paying job	Apply to one of these 10 companies if you want to work for a great boss
Here’s how much you should have saved by 45	Robots won’t steal our jobs if we put workers at center of the AI revolution	Elon Musk reveals the complete SpaceX spacesuit for the first time	10 jobs with the fastest wage growth in the US
Kellyanne Conway on her success: 'I think like a man and behave like a lady'	The 10 most expensive NFL teams to watch live	Former Goldman Sachs trader hopes to use A.I. to give financial advice	SoulCycle's CEO says this interview question tells her the most about candidates

The #1 city for starting a small business is ...

The 10 friendliest cities for small business

10. San Antonio

9. Boulder, Colorado

8. Fort Collins, Colorado

7. Houston

6. Nashville, Tennessee

5. Knoxville, Tennessee

4. Austin, Texas

3. Richmond, Virginia

2. Dallas

1. Manchester, New Hampshire

More From Careers

more from Careers