The Best and Worst Places for Small Businesses in the U.S.

Depending upon where you live in the U.S., you may find that the environment is or is not conducive to small business. How friendly or unfriendly a location in the United States can be to small business depends on a great number of things.

Of course, the tax rates will be incredibly important – you’ve got to preserve that bottom line, after all. But there are other things to consider, too. How much support do small businesses receive from the local government? How receptive are customers in the area to businesses that aren’t nationally recognizable brands?


As an entrepreneur, it’s important to know where the ground is most fertile for any potential business opportunity. This is true whether you’re looking to get a startup off the ground or if you’re looking to open a franchise location. So, what are the best and worst places in the country? Thumbtack recently conducted a survey to find out; let’s take a look at their results.

The Best Places for Small Business in the U.S.

When it came to states that were the most favorable for small businesses, Thumbtack indentified five.

Out in the middle of the country: Idaho, Texas and Utah were found to be particularly friendly to small businesses.

Elsewhere, the South rated well: Louisiana and Virginia received the most favorable ratings from the small business owners.

As we mentioned earlier, taxes were, of course, important concerns when rating the friendliness of a given state toward small business. However, this was not the most important factor. In general, those who rated these five states highly found that they had fewer hoops to jump through when it came to complying with regulations. As you look to pursue your own business opportunities, this is something that you’ll want to keep in mind. Regulations can cost money, certainly, but they also cost time, which is incredibly important to an entrepreneur.

The Worst Places for Small Business in the U.S.

It may not surprise you to learn that the Northeast may be one of the most hostile regions in the country to small business. There are already a lot of established companies there, and the tax rates are much higher there as a result. But, in Thumbtack’s survey, it was also discovered that local governments are just generally unfriendly to small businesses.

So, where were the worst locations?

One of them happened to be Providence, Rhode Island, which reflected the overall attitude of small business owners in that state in general.

In addition, small business owners also reported that the environment was generally unfavorable in New Jersey and Connecticut.


Home’s Wherever You Lay Your Head

Ultimately, it’s up to you where you choose to start your small business. While some places may be better than others, the success of your business rests upon your shoulders. So, don’t stress if you’re not located in the most ideal spot. The harder the climb, the greater the reward!