While size matters when choosing the right city for a business startup, big is not always the best choice, according to a study by WalletHub.
Every small city offers unique advantages and disadvantages to new business owners, the data showed, with benefits including lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond.
“The benefits of starting a business in a small city include lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond. But there are drawbacks, too,” said WalletHub Analyst Chip Lupo.
“Entrepreneurs who want to build a large professional network aren’t likely to make as many connections in a town with fewer residents,” he added. “Other restrictions might include limited industry options, a less diverse customer base and difficulty attracting and keeping top talent.”
At the same time, 35% of new businesses fail within the first two years and 48% fail during the first five.
Meanwhile, the commercial insurance market sits at roughly $845 billion in 2025, according to The Business Research Company, with the market projected to reach $1235.92 billion by 2029 at a compound annual growth rate of 10%.
Major trends during the forecast period include digitization and insurtech integration, parametric insurance, sustainability and climate risk management, data analytics for risk modeling, product customization and flexibility, regulatory compliance and changes.
The slideshow above illustrates the best small cities for business startups as selected by WalletHub.
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