With National Small Business Week approaching, the personal-finance website WalletHub conducted an in-depth analysis of 2017’s Best Small Cities to Start a Business.
To determine the most business-friendly small markets in the U.S., WalletHub’s analysts compared more than 1,200 small-sized cities across 16 key metrics. The data set ranges from average growth in number of small businesses to investor access to labor costs.
Holland, MI topped the list with a total score of 50.22. The City of Pensacola placed 382 with a 41.15. The killers for Pensacola were Business Environment (897) and Access to Resources (477).
Area small cities that were ranked higher than Pensacola include Dothan, AL (#31), Gulfport, MS (#265), Hattiesburg, MS (325), and Biloxi, MS (357).
Business Environment [Total Points 50] included:
Average Length of Work Week (in Hours): Full Weight (~8.33 Points)
Average Growth in Number of Small Businesses: Full Weight (~8.33 Points)
Number of Startups per Capita: Full Weight (~8.33 Points)
Average Revenue per Business: Full Weight (~8.33 Points)
Average Growth of Business Revenues: Full Weight (~8.33 Points)
Industry Variety: Full Weight (~8.33 Points)
Access to Resources [Total Points: 25] included
Financing Accessibility: Full Weight (~4.17 Points)
Note: This metric was calculated as follows: Total Annual Value of Small-Business Loans / Total Number of Small Businesses
Investor Access: Full Weight (~4.17 Points)
Human-Resource Availability: Full Weight (~4.17 Points)
Note: This metric was calculated as follows: Number of Unemployed Residents – Number of Job Openings
Higher-Education Assets: Full Weight (~4.17 Points)
Note: This metric measures the average university rank (based on U.S. News & World Report’s Best Colleges Rankings) and number of students enrolled per 1,000 Residents.
Workforce Educational Attainment: Full Weight (~4.17 Points)
Note: This metric measures the percentage of the population with at least a bachelor’s degree.
Working-Age Population Growth: Full Weight (~4.17 Points)
Note: “Working-Age Population†includes those aged 16 to 64.
Business Costs [Total Points: 25] included:
Office-Space Affordability: Full Weight (~6.25 Points)
Note: This metric measures the per-square-foot cost of commercial office space.
Labor Costs: Full Weight (~6.25 Points)
Note: This metric measures the median annual income.
Corporate Taxes: Full* Weight (~6.25 Points)
Note: Data for this metric were available only at the state level.
Cost of Living: Full Weight (~6.25 Points)