Does New York state have some of the worst small cities to start a business? A new WalletHub study may have the answer.
According to WalletHub, smaller cities can often provide a greater chance of success when starting a new business.
“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,” WalletHub Analyst Chip Lupo said. “But there are drawbacks, too.”
To determine the best and worst small cities to start a business, WalletHub compared 1,334 small cities in the United States across 18 metrics ranging from the growth rate of the number of small businesses to investor access and labor costs.
Out of those 1,334 small cities included in the study, 56 of them are located in the Empire State. The 56 cities range from the No. 304 spot, all the way to the No. 1,317 spot, indicating that New York’s small cities may not be the best places to start a new business.
Here is what to know.
NY’s 5 best and worst small cities to start a business
Out of the 56 New York cities included in the study, here are the five best-ranked and five worst-ranked small cities to start a business, according to WalletHub:
New York’s five best small cities to start a business
Poughkeepsie, New York’s best-ranked small city to start a business, has an overall score of 49.09. It placed in the No. 626 spot for the business environment rank, No. 133 for the access to resources rank and No. 471 for the business costs rank.
New York’s five worst small cities to start a business
Long Beach, New York’s worst-ranked small city to start a business, has an overall score of 34.33. It placed in the No. 1,297 spot for the business environment rank, No. 724 for the access to resources rank and No. 1,194 for the business costs rank.
WalletHub’s overall best and worst small cities to start a business
How WalletHub assessed best & worst small cities to start a business
To determine the best and worst small cities to start a business, WalletHub compared 1,334 U.S. cities across three dimensions: business environment, access to resources and business costs.
The business environment category analyzed these factors:
The access to resources category analyzed these factors:
The business costs category analyzed these factors:
Data used to create the ranking was collected as of March 16, 2026, and was sourced from multiple entities, including the U.S. Census Bureau, the Bureau of Labor Statistics, the Federal Deposit Insurance Corporation and WalletHub research.
— Madison Scott is a New York Connect reporter, covering entertainment, breaking and consumer news, and trending topics with a focus on stories that matter to readers across New York state. She also has an interest in how the system helps or doesn’t help families with missing loved ones. She can be reached at MDScott@USATodayco.com.
This article originally appeared on Rockland/Westchester Journal News: NY’s best and worst small cities to start a business
Reporting by Madison Scott, New York Connect Team / Rockland/Westchester Journal News
USA TODAY Network via Reuters Connect
