Where Small Businesses Are Thriving—And Where They’re Struggling
A thriving small business community signals a prosperous city. However, while some places are gaining new businesses, others are losing them. The team at Ooma analyzed which cities saw the most small businesses open and which experienced the highest rate of business closures last year. The most common reasons for closures include low sales, owner retirement, or the sale of the business. However, some businesses relocate to more promising areas, and this data sheds light on where they’re going. Read more
Cities Gaining the Most Small Businesses
These cities experienced the highest number of new small businesses last year:
• Lakeland-Winter Haven, FL
• Orlando-Kissimmee-Sanford, FL
• Augusta-Richmond, GA
• Provo-Orem, UT
• Memphis, TN
• Atlanta-Sandy Springs-Roswell, GA
• Greenville-Anderson-Mauldin, SC
• Baton Rouge, LA
• Jacksonville, FL
• Cape Coral-Fort Myers, FL
Many of these are mid-sized cities with lower rent, making them attractive for small business owners.
Cities Losing the Most Small Businesses
On the other hand, these cities saw the highest number of business closures:
• Los Angeles-Long Beach-Anaheim, CA
• San Francisco-Oakland-Hayward, CA
• San Jose-Sunnyvale-Santa Clara, CA
• Urban Honolulu, HI
• Oxnard-Thousand Oaks-Ventura, CA
• Boston-Cambridge-Newton, MA-NH
Many of these are major cities with high living costs and expensive commercial rent, making it difficult for small businesses to survive.
Industries That Succeed Most Often
Some small business types tend to thrive, regardless of location. These include:
• Health Care
• Groceries
• Cleaning & Janitorial Services
• Laundromats
• Landscaping
• Plumbing
• Auto Repair
• Power Washing
The key takeaway? Cities that strike a balance between affordability and customer demand are where small businesses have the best chance of success.
