Estimated read time: 2-3 minutes SALT LAKE CITY — Utah is a hot spot for entrepreneurs. In fact, starting a small business is encouraged. Last year, the Utah Small Business Credit Initiative was created and federally funded by the Utah Governor’s Office of Economic Opportunity to support small businesses — specifically in smaller and more rural communities. Living in a smaller town has its benefits when it comes to starting a small business. Lower living expenses, including rent and utilities, due to reduced costs associated with less competition, can make it cheaper to run a business. Also, the close-knit nature of small towns often means that local businesses receive strong support from residents who prefer to shop at stores owned by familiar faces. WalletHub evaluated the business environment of over 1,300 small cities with populations between 25,000 and 100,000 to identify the best ones for starting a business using a set of 18 critical metrics, including the growth in small business numbers, access to investors and labor costs. Best small cities for starting a business: “Cedar City is the best small city to start a business. It has one of the highest rates of startups per capita, as well as the fourth-highest growth in the number of small businesses between 2015 and 2021, at over 33%,” per the study. “This growth is significant because it shows that the city has the conditions to keep small businesses afloat even during this period of economic difficulty.” Seven other Utah cities were ranked in the top 30, including six in Utah County: Lehi (No. 8), Eagle Mountain (No. 11), Midvale (No. 14), American Fork (No. 15), Springville (No. 18), Spanish Fork (No. 26) and Orem (No. 28). Regarding the average growth in the number of small businesses, Utah had two towns out of three tie for first place: Washington and St. George. More people are starting businesses Following the pandemic’s setback, many people turned their hobbies into trade, and the number of new businesses created each year has been growing since. In 2023, the U.S. Chamber of Commerce said the entrepreneur trend continued with 5.5 million new business applications submitted, a record-breaking amount. According to the Chamber’s report, Utah saw the following growth in 2023: 71,877 new business applications. 5,608 projected business formations in the four quarters. 7.8% of business applications are expected to become an employer. Small businesses represent 99.3% of all companies in Utah. “Utah’s diverse economy, business-friendly environment, and thriving industries make it an excellent place for businesses to invest. Companies should consider the state’s primary industries and potential return on investment when deciding where to invest,” according to Score — emphasizing the fast-growing departments for business growth in the Beehive State: Tourism. Construction. Technology. E-commerce.
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