Huntsville is one of the best small cities to start a business, study says

May 05-- May 5--Small-business confidence has surged to record levels in 2019, with entrepreneurs across the country opening their doors for business.

After reviewing more than 1,200 cities with fewer than 100,000 residents across the U.S., personal finance site WalletHub says Huntsville is one of the best small cities in America to start a business. Huntsville was ranked fifth on the list, while ranking at the top for business environment.

"Huntsville is a wonderful place to start and grow a business. With its small-town roots and hometown vibe, Huntsville features multiple locally owned and operated businesses which have been fixtures in the city for decades," said Tammy Gann, economic director for the city of Huntsville. "The city of Huntsville's economic development department aims to create a pro-business environment that supports and champions local businesses and entrepreneurs, while encouraging business development and job growth."

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, southeast Texas' Huntsville earned a total score of 57.19 out of 100 -- 3.49 points behind the top city, Holland, Michigan.

Additionally, Huntsville was the only small city in the state of Texas ranked in the top-50, with Big Sandy as the closest at No. 70. San Marcos came in at 119, while Texas City was 121 and Georgetown was 155.

"Huntsville is the perfect location for retail and commercial development," said Bruce Kim, the director of franchise development for Checkers and Rally's. "When we are expanding, we look for cities just like Huntsville with a nice ethnic mix and a working class population."

Small businesses franchises like Checkers generate more than 60 percent of all jobs added annually in the U.S., according to the Bureau of Labor Statistics. According to the Small Business Administration, approximately 50 percent of new businesses fail during the first five years, but franchises can offer greater sustainability than non-franchised businesses.

"There are a couple of factors that really make Huntsville attractive for new businesses," Huntsville city manager Aron Kulhavy said. "The climate in the state of Texas is very pro-business, and also our location on the I-45 corridor is great.

"We are in a prime position with available land that is more affordable than land further south. We also have good infrastructure within the city in place, with plans to improve the infrastructure even more."

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."

While many experts believe the city's population will see large growth over the next decade, developers still say that location is everything.

"Location is everything for developers, but when you think about avoiding the chaos and competition of large cities and starting your business in a unique, but equally advantageous place with room to grow, why not Huntsville?" Gann added.

There are currently 24 active commercial projects within the city of Huntsville with more expected to be added within the coming months.

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