Cities With the Most Small Business Owners

Small businesses are an important backbone of the American economy, accounting for approximately half of the private sector jobs in the country. In this study, AdvisorSmith examined 259 metropolitan areas in the United States, which we call “cities,” to find the cities with the highest rates of small business ownership per capita.

Our study used data from the U.S. Census Bureau’s Current Population Survey to estimate the number of active small business owners in each city. We identified business owners who were self-employed in either incorporated or unincorporated businesses as their primary job, and who had worked in their business during the week they were surveyed. We then used these estimates to calculate the number of small business owners per 1,000 residents in each of the cities.

We segmented cities into three groups based on population size, with cities having over 750,000 residents classified as large cities, and cities with between 250,000 and 750,000 residents classified as midsize cities. Small cities were those with under 250,000 residents. Using these classifications, we determined the top cities for small business owners in each city size grouping.

We found that nationwide, there were approximately 45 active small business owners per 1,000 residents in the United States. In the 259 cities included in our study, there were about 47.7 small business owners per 1,000 population. Among large cities, the average was 43.1 per 1,000, while in midsize cities, the average was 40.7 per 1,000 population. In small cities, there were 60.5 small business owners per 1,000 residents. Small business ownership was most common in small cities and least common in midsize cities.

Large Cities with the Most Small Business Owners

1. Bridgeport, CT
Small business owners: 77,582
Small business owners per 1,000 Population: 82.2

The Bridgeport metropolitan area, which includes Bridgeport, Stamford, Norwalk, Danbury, and the rest of Fairfield County, was the #1 large city for small business owners. Bridgeport had 82.2 active small business owners per 1,000 residents, which was nearly double the national average. Bridgeport is located in the southwest corner of the state of Connecticut, near the state’s border with New York. The county contains some of the most affluent zip codes in the United States and is home to a large financial services industry that has spilled over from New York City.

Industries in Bridgeport composing the highest proportion of small businesses are largely services based. These small businesses include retail trade, health care, finance and insurance, and professional, scientific, and technical services.

Rank	City	Active Small Business Owners	Small Business Owners per 1,000 Population
1	Bridgeport, CT	77,582	82.2
2	Raleigh, NC	103,731	74.6
3	Denver, CO	211,410	71.2
4	Grand Rapids, MI	72,209	67.0
5	Baton Rouge, LA	54,409	63.6
6	Rochester, NY	66,365	62.0
7	Miami, FL	379,510	61.5
8	Tulsa, OK	60,390	60.5
9	Kansas City, MO	126,078	58.5
10	Orlando, FL	151,174	58.0
11	Nashville, TN	111,844	57.8
12	New Haven, CT	48,155	56.3
13	Knoxville, TN	48,871	56.2
14	Houston, TX	396,083	56.1
15	Oxnard, CA	47,135	55.7
16	Los Angeles, CA	727,310	55.0
17	Virginia Beach, VA	94,747	53.7
18	Charleston, SC	42,873	53.4
19	Minneapolis, MN	193,015	53.0
20	Atlanta, GA	317,272	52.7
21	Greensboro, NC	38,626	50.0
22	Columbus, OH	104,551	49.3
23	Phoenix, AZ	243,142	49.1
24	Portland, OR	121,928	48.9
25	Charlotte, NC	128,244	48.6
26	Cincinnati, OH	107,309	48.3
27	Cape Coral, FL	37,213	48.3
28	North Port, FL	39,391	47.1
29	Oklahoma City, OK	65,734	46.7
30	Tampa, FL	148,064	46.3
31	Boston, MA	223,376	45.8
32	Pittsburgh, PA	105,394	45.5
33	Sacramento, CA	106,947	45.2
34	Salt Lake City, UT	55,675	45.2
35	Austin, TX	99,023	44.5
36	Seattle, WA	175,675	44.1
37	Dallas, TX	329,144	43.5
38	Washington, DC	270,982	43.1
39	New York, NY	814,814	42.4
40	Omaha, NE	39,993	42.1
41	Indianapolis, IN	86,746	41.8
42	Cleveland, OH	83,124	40.6
43	Richmond, VA	52,010	40.3
44	San Antonio, TX	100,922	39.6
45	Albuquerque, NM	36,084	39.5
46	San Francisco, CA	182,982	38.7
47	Memphis, TN	51,879	38.6
48	McAllen, TX	33,439	38.5
49	San Diego, CA	127,482	38.2
50	Columbia, SC	31,938	38.1
51	Allentown, PA	31,943	37.8
52	Chicago, IL	357,882	37.8
53	Providence, RI	59,312	36.5
54	Jacksonville, FL	56,356	36.1
55	Albany, NY	31,660	36.0
56	Hartford, CT	42,664	35.4
57	Riverside, CA	161,812	34.8
58	Urban Honolulu, HI	33,301	34.2
59	Louisville, KY	43,253	34.2
60	Greenville, SC	30,719	33.4
61	Philadelphia, PA	197,216	32.3
62	New Orleans, LA	39,977	31.5
63	Baltimore, MD	87,622	31.3
64	Detroit, MI	128,394	29.7
65	Las Vegas, NV	66,801	29.5
66	Worcester, MA	27,854	29.4
67	Birmingham, AL	30,244	27.7
68	San Jose, CA	53,189	26.7
69	El Paso, TX	22,448	26.6
70	Stockton, CA	20,198	26.5
71	Tucson, AZ	26,777	25.6
72	Dayton, OH	20,440	25.3
73	Fresno, CA	24,665	24.7
74	St. Louis, MO	67,639	24.1
75	Milwaukee, WI	30,548	19.4
76	Bakersfield, CA	12,686	14.1
77	Buffalo, NY	15,751	14.0

Midsize Cities with the Most Small Business Owners

1. Ocala, FL
Small business owners: 49,090
Small business owners per 1,000 Population: 134.3

The Ocala metropolitan area is composed of the entirety of Marion County, Florida, with its main city being Ocala. The city is located in the northern region of Florida, roughly halfway between the cities of Jacksonville and Tampa. Ocala is well known for its horse breeding industry, with horses bred in Ocala having won races in the Triple Crown series. The city also plays host to one of the largest horse shows in the country. There is also a tourism industry focused on Silver Springs, which includes glass bottom boat tours.

Rank	City	Active Small Business Owners	Small Business Owners per 1,000 Population
1	Ocala, FL	49,090	134.3
2	Amarillo, TX	29,668	110.1
3	Kennewick, WA	29,961	100.0
4	Boulder, CO	29,683	91.0
5	South Bend, IN	28,946	89.4
6	Akron, OH	60,659	86.2
7	Waco, TX	22,789	84.1
8	Lubbock, TX	26,074	81.0
9	Santa Maria, CA	33,374	74.7
10	Savannah, GA	29,359	74.6
11	Asheville, NC	34,180	73.9
12	Santa Rosa, CA	35,326	71.5
13	Fort Collins, CO	23,466	65.8
14	Roanoke, VA	20,336	65.0
15	Sioux Falls, SD	16,793	62.5
16	Jackson, MS	37,053	62.3
17	Atlantic City, NJ	16,278	61.7
18	Spokane, WA	34,029	59.9
19	Boise City, ID	44,590	59.5
20	Chattanooga, TN	31,483	55.6
21	Santa Cruz, CA	15,179	55.6
22	Youngstown, OH	29,573	55.2
23	Laredo, TX	15,141	54.7
24	Wichita, KS	34,278	53.5
25	College Station, TX	14,015	52.3
26	Canton, OH	20,740	52.2
27	Hickory, NC	19,235	52.0
28	Portland, ME	27,063	50.3
29	Shreveport, LA	19,604	49.7
30	Evansville, IN	15,566	49.4
31	Palm Bay, FL	29,314	48.7
32	Provo, UT	30,978	47.7
33	Colorado Springs, CO	34,896	46.8
34	Port St. Lucie, FL	22,390	45.8
35	Green Bay, WI	14,439	44.7
36	Modesto, CA	24,553	44.6
37	Beaumont, TX	17,380	44.3
38	Myrtle Beach, SC	21,961	44.2
39	Erie, PA	11,804	43.8
40	Cedar Rapids, IA	11,760	43.1
41	Salisbury, MD	17,547	42.2
42	Fayetteville, AR	22,393	41.8
43	Tallahassee, FL	16,027	41.5
44	Durham, NC	26,556	41.2
45	Peoria, IL	16,362	40.8
46	Longview, TX	11,363	39.6
47	Ogden, UT	26,507	38.8
48	Syracuse, NY	24,842	38.3
49	Hagerstown, MD	10,868	37.5
50	Utica, NY	10,858	37.4
51	Lancaster, PA	20,205	37.0
52	Salinas, CA	15,934	36.7
53	Lexington, KY	18,836	36.4
54	Des Moines, IA	25,127	35.9
55	Manchester, NH	14,894	35.7
56	Trenton, NJ	12,866	35.0
57	Harrisburg, PA	19,984	34.6
58	Davenport, IA	12,999	34.3
59	Huntsville, AL	16,040	34.0
60	Mobile, AL	14,470	33.8
61	Corpus Christi, TX	14,414	33.6
62	Toledo, OH	21,477	33.5
63	Salem, OR	14,469	33.3
64	Lakeland, FL	22,892	31.6
65	Columbus, GA	9,974	31.0
66	Eugene, OR	11,237	29.4
67	Deltona, FL	19,281	28.8
68	Madison, WI	18,892	28.4
69	Lafayette, LA	13,872	28.4
70	Montgomery, AL	10,411	27.9
71	Little Rock, AR	20,525	27.6
72	Spartanburg, SC	8,495	26.6
73	San Luis Obispo, CA	7,388	26.1
74	Vallejo, CA	11,018	24.6
75	Gainesville, FL	8,035	24.5
76	Killeen, TX	10,417	22.6
77	Brownsville, TX	9,535	22.5
78	Ann Arbor, MI	8,160	22.2
79	Kingsport, TN	6,620	21.5
80	Huntington, WV	7,210	20.3
81	Reading, PA	7,784	18.5
82	Lansing, MI	9,615	17.5
83	Springfield, MA	11,502	16.5
84	Greeley, CO	4,777	14.7
85	Kalamazoo, MI	3,852	14.5
86	Fayetteville, NC	7,489	14.2
87	Naples, FL	5,037	13.1
88	Winston, NC	8,481	12.5
89	Charleston, WV	3,006	11.7
90	Augusta, GA	7,039	11.5
91	Rockford, IL	3,777	11.2
92	Fort Wayne, IN	4,098	9.9
93	Norwich, CT	2,514	9.5
94	Flint, MI	3,813	9.4
95	Clarksville, TN	2,813	9.0
96	York, PA	4,057	9.0
97	Springfield, MO	3,566	7.6
98	Pensacola, FL	3,643	7.2
99	Scranton, PA	3,854	7.0
100	Visalia, CA	3,041	6.5

Small Cities with the Most Small Business Owners

1. Monroe, MI
Small business owners: 26,120
Small business owners per 1,000 Population: 173.6

The Monroe metropolitan area consists of the entirety of Monroe County and is centered on the city of Monroe. Located just south of Detroit, Monroe is a small city on the shores of Lake Erie. The city is known for hosting the La-Z-Boy furniture company. Economically, some of the important sectors filled by small businesses in the city include health care, retail trade, accommodation and food services, and construction.

Rank	City	Active Small Business Owners	Small Business Owners per 1,000 Population
1	Monroe, MI	26,120	173.6
2	Bend, OR	34,095	172.5
3	Cleveland, TN	21,714	171.2
4	Watertown, NY	18,142	165.2
5	Williamsport, PA	18,035	159.2
6	Charlottesville, VA	33,003	151.1
7	Prescott, AZ	35,134	149.4
8	Burlington, NC	23,052	136.0
9	Winchester, VA	18,374	132.1
10	Mount Vernon, WA	16,027	124.0
11	St. George, UT	21,915	123.4
12	Panama City, FL	21,534	123.3
13	California, MD	11,021	97.1
14	Barnstable Town, MA	19,233	90.3
15	Daphne, AL	17,555	78.6
16	Yuma, AZ	16,511	77.2
17	Wichita Falls, TX	11,653	77.0
18	Johnstown, PA	9,892	76.0
19	Hanford, CA	11,564	75.6
20	Chambersburg, PA	11,609	74.9
21	Auburn, AL	12,283	74.6
22	Oshkosh, WI	12,811	74.5
23	Appleton, WI	17,016	71.5
24	Racine, WI	13,872	70.7
25	Burlington, VT	14,953	68.1
26	Las Cruces, NM	14,749	67.6
27	Greenville, NC	11,714	64.8
28	Jacksonville, NC	12,800	64.7
29	Binghamton, NY	15,211	63.7
30	Coeur d'Alene, ID	10,378	62.6
31	Florence, AL	9,250	62.5
32	Glens Falls, NY	7,786	62.2
33	Bangor, ME	9,240	60.7
34	Bloomington, IL	10,260	59.8
35	Chico, CA	13,099	59.8
36	Warner Robins, GA	10,890	58.7
37	Muskegon, MI	10,112	58.3
38	Gainesville, GA	11,409	55.8
39	Billings, MT	10,029	55.2
40	Terre Haute, IN	9,982	53.7
41	Battle Creek, MI	7,099	52.9
42	Wausau, WI	8,487	52.0
43	Blacksburg, VA	8,598	51.8
44	Santa Fe, NM	7,686	51.1
45	Saginaw, MI	9,372	49.2
46	Farmington, NM	5,628	45.4
47	Abilene, TX	7,790	45.3
48	East Stroudsburg, PA	7,504	44.1
49	Champaign, IL	9,853	43.6
50	Tyler, TX	9,385	40.3
51	Elkhart, IN	8,193	39.7
52	Goldsboro, NC	4,581	37.2
53	Kahului, HI	5,956	35.6
54	Morgantown, WV	4,813	34.6
55	Bowling Green, KY	6,094	34.5
56	Monroe, LA	6,736	33.6
57	Fort Smith, AR	8,036	32.3
58	Athens, GA	6,796	32.0
59	Vineland, NJ	4,775	31.9
60	Carbondale, IL	4,363	31.8
61	Medford, OR	7,002	31.7
62	Springfield, IL	6,425	31.0
63	Idaho Falls, ID	4,689	30.9
64	Sherman, TX	3,758	27.6
65	Pine Bluff, AR	2,463	27.5
66	Jackson, MI	4,239	26.7
67	Redding, CA	4,626	25.7
68	Fargo, ND	5,539	22.5
69	Janesville, WI	3,633	22.2
70	Odessa, TX	3,194	19.2
71	Lafayette, IN	4,227	18.1
72	Bloomington, IN	3,023	17.9
73	Dover, DE	2,770	15.3
74	Hilton Head Island, SC	3,366	15.1
75	Lewiston, ME	1,613	14.9
76	Johnson City, TN	2,905	14.3
77	Lake Charles, LA	2,970	14.2
78	Waterloo, IA	2,379	14.1
79	Topeka, KS	3,259	14.0
80	Macon, GA	3,192	13.8
81	Florence, SC	2,522	12.3
82	Iowa City, IA	2,039	11.8

Related Articles for Small Business Owners

• Best Small Business Insurance
• Business Insurance Cost
• Best Small Business Loans
• Best Banks for Small Business Loans

Methodology

In this study, we determined the number of small business owners in 259 U.S. metropolitan areas, which we call “cities.” We used microdata from the U.S. Census Bureau’s Current Population Survey from April 2020 through September 2020. This microdata includes survey responses from individual small business owners from around the country.

We defined an active small business owner as an individual whose primary job was self-employed, either in an incorporated or unincorporated business, and who worked more than zero hours in their business during the survey week. Although this data also includes larger businesses, almost all businesses are small businesses (approximately 99% to 99.9%), so the total number of business owners provides an accurate approximation of the total number of small business owners.

For each metropolitan area, we calculated the total number of small business owners. We also retrieved the population of each metropolitan area and used this number to calculate the number of small business owners per 1,000 population. We segmented the metropolitan areas into three groups based on population, with large cities having over 750,000 residents, midsize cities having between 250,000 and 750,000 residents, and small cities having under 250,000 residents. We then ranked the cities within their size cohorts to determine the cities with the most small business owners.

Sources

1. U.S. Census Bureau, Current Population Survey