While many small U.S. cities offer unique opportunities to business startups, they also present a unique set of challenges, according to a recent study by WalletHub.
Despite the lure of lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond, entrepreneurs wanting to build large professional networks aren’t likely to make as many connections in a town with fewer residents, the data showed, with other restrictions including limited industry options, a less diverse customer base and difficulty attracting and keeping top talent.
In 2025, 61% of startups say they fear the rising cost of goods and services most, as 62% of small business owners list inflation as their top concern and 30% cite labor shortages.
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Joe Toppe
Joe Toppe serves as managing editor of PropertyCasualty360.com. Joe is also a father of three, an author, and longtime lover of baseball.
