Holland is America’s best small city to start a business, study says

April 22-- Apr. 22--After reviewing more than 1,200 cities with fewer than 100,000 residents across the U.S., personal-finance site WalletHub says Holland, Michigan, is the best small city in which to start a business.

WalletHub's ranking of small cities came from a review of 18 key metrics, including: startups per capita, average growth of business revenues, investor access, workforce educational attainment and more.

Weighing these multi-dimensional metrics on a 100-point scale, west Michigan's Holland earned a total score of 60.68 out of 100 -- 0.24 points higher than the runner-up, St. George, Utah.

In addition to being the No. 1 overall, Holland also came in first place when it came to access to resources.

Here's a look at WalletHub's top 10 best small cities for starting a business:

1. Holland, MI

2. St. George, UT

3. Fort Myers, FL

4. Redmond, OR

5. Cheyenne, WY

6. Huntsville, TX

7. Bozeman, MT

8. Aberdeen, SD

9. Bend, OR

10. Wilson, NC

Yet WalletHub said it's important to weigh both the pros and the cons of setting up a business in a small city.

"Some benefits include lower overhead costs, stronger relationships with customers, and the potential to become a big fish in a little pond," the site said.

"But there are plenty of drawbacks, too. For one, 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."

Contact Aleanna Siacon: ASiacon@freepress.com. Follow her on Twitter: @AleannaSiacon.

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