BEST & WORST CITIES TO WORK IN A SMALL BUSINESS

This study sought to identify the cities that are the most and least friendly to employees of small companies.

There is no shortage of commentary on the best and worst cities to start a small business. Such companies employ about 47% of the private workforce in this country paying more than 40% of the private payroll, and creating more than 60% of the new jobs added over the past 20 years, according to the U.S. Small Business Administration. As such, it bears asking what opportunities exist for the roughly 12.3% of people who are currently either unemployed or marginally attached to the labor force according to data from the Bureau of Labor Statistics.

More specifically, WalletHub’s used 10 different metrics ranging from net small business job growth and industry variety to hours worked and average wages for new hires to evaluate the state of small business in the 100 largest metropolitan areas in the United States. We then ranked the cities based on their overall attractiveness for job seekers.

 

Rank Metro Area Rank Metro Area
1
Minneapolis, MN
51
St. Louis, MO
2
Salt Lake City, UT
52
San Jose, CA
3
Miami, FL
53
Ogden, UT
4
Madison, WI
54
New Orleans, LA
5
Oklahoma City, OK
55
Phoenix, AZ
T-6
San Francisco, CA
56
Charleston, SC
T-6
Denver, CO
57
Akron, OH
8
Seattle, WA
58
Cape Coral, FL
9
Dallas, TX
59
Hartford, CT
10
Indianapolis, IN
60
Providence, RI
11
New York, NY
61
Louisville, KY
12
Boston, MA
62
Milwaukee, WI
13
Houston, TX
63
Colorado Springs, CO
14
Omaha, NE
64
Oxnard, CA
15
Nashville, TN
65
Springfield, MA
T-16
Austin, TX
66
Dayton, OH
T-16
Bridgeport, CT
67
Little Rock, AR
18
Los Angeles, CA
68
Baton Rouge, LA
19
Des Moines, IA
69
Greensboro, NC
20
Portland, OR
70
Detroit, MI
21
Tulsa, OK
71
Sacramento, CA
22
Grand Rapids, MI
72
Allentown, PA
23
Columbus, OH
73
Toledo, OH
24
Chicago, IL
74
Poughkeepsie, NY
25
Charlotte, NC
75
Wichita, KS
26
Pittsburgh, PA
76
Las Vegas, NV
27
Richmond, VA
77
Virginia Beach, VA
28
Atlanta, GA
78
Honolulu, HI
29
Raleigh, NC
79
Columbia, SC
30
Kansas City, MO
80
Knoxville, TN
31
North Port, FL
81
Worcester, MA
32
Boise City, ID
82
Birmingham, AL
33
Philadelphia, PA
83
McAllen, TX
34
Baltimore, MD
84
Memphis, TN
35
Greenville, SC
85
Tucson, AZ
36
Orlando, FL
86
Albuquerque, NM
37
Cleveland, OH
87
El Paso, TX
38
Lancaster, PA
88
New Haven, CT
39
Albany, NY
89
Palm Bay, FL
40
Jacksonville, FL
90
Lakeland, FL
41
Provo, UT
91
Youngstown, OH
42
Tampa, FL
92
Fresno, CA
43
Buffalo, NY
93
Riverside, CA
44
Rochester, NY
94
Chattanooga, TN
45
Harrisburg, PA
95
Bakersfield, CA
46
Cincinnati, OH
96
Scranton, PA
47
San Antonio, TX
97
Jackson, MS
T-48
Washington, DC
98
Augusta, GA
T-48
San Diego, CA
99
Modesto, CA
50
Syracuse, NY
100
Stockton, CA

 

Detailed findings

Highest Net Small Business Job Growth
1. New York, NY (55,601)
2. Chicago, IL (51,652)
3. Los Angeles, CA (27,999)
4. Detroit, MI (23,514)
5. Minneapolis, MN (22,863)
Lowest Net Small Business Job Growth
93. Tuscon, AZ (596)
94. Augusta, GA (522)
95. McAllen, TX (450)
96. Cape Coral, FL (29)
97. Lakeland, FL (-297)

 

Highest Number of Small Businesses Per 1,000 Inhabitants
1. Miami, FL (30.22)
2. Bridgeport, CT (28.65)
3. Denver, CO (28.08)
4. New York, NY (27.87)
5. Portland, OR (27.31)
Lowest Number of Small Businesses Per 1,000 Inhabitants
96. Modesto, CA (15.91)
97. Stockton, CA (15.30)
98. Riverside, CA (14.95)
99. McAllen, TX (14.03)
100. Bakersfield, CA (14.02)

 

Lowest Average Number of Hours Worked
1. Rochester, NY (31.9)
2. Springfield, MA (32.1)
3. Buffalo, NY (32.4)
4. McAllen, TX (32.9)
T-5. Providence, RI (33.1)
T-5. Fresno, CA (33.1)
Highest Average Number of Hours Worked
T-95. Des Moines, IA (36.8)
T-95. Augusta, GA (36.8)
97. Salt Lake, UT (37.1)
98. Houston, TX (37.3)
99. Dallas, TX (37.4)
100. Bakersfield, CA (37.5)

 

High Small Business Vitality*
1. Austin, TX (12.66)
2. Miami, FL (10.95)
3. Provo, UT (9.72)
4. San Jose, CA (9.24)
5. Houston, TX (8.03)
Low Small Business Vitality*
95. Youngstown, OH (-6.77)
96. Stockton, CA (-7.11)
97. Wichita, KS (-9.20)
98. Lakeland, FL (-9.42)
99. Memphis, TN (-9.50)

*Source: bizjournals.com


6 Tips for Landing a Small Business Job

  1. Tailor Your Search, But Avoid Limiting Yourself: You obviously don’t want to cast too wide a net as that will simply increase the odds of missing a job you’d be perfect for as well as limit your ability to pay enough attention to each lead. However, it’s, perhaps, equally bad to put yourself in a box in terms of the types of jobs you’re willing to consider, the starting pay you require, and even the city in which you’ll live. So, try to leave your preconceptions behind and instead focus on the jobs for which your skills are appropriate rather than what your degree is in no matter what your degree may be.

  2. Move Proactively If Necessary: The entrepreneurs who run successful small businesses,which is where you want to be, are busy folks who garner a lot of interest from local job applicants. They tend to give these candidates more consideration as it’s simply easier to interview them and more likely they will accept a job if offered. So, if you’re not finding the type of job you want where you’re currently living, you should definitely at least consider moving to one of the highest ranked cities in this study.

  3. Focus on the Future: Job seekers have a tendency to overly emphasize immediate compensation and the sheer availability of a job, any job. While there is obviously something to be said for being able to pay the bills in the short term, it’s also important to consider opportunities for growth within a given company, the likelihood of said company achieving long term success, and the potential for skills development that could help you find other work in the future.

  4. Customize Your Approach: It’s amazing how little care most job applicants put into their search. Many simply apply en masse thinking this will give them the greatest odds of finding a job. In truth, however, they’re severely minimizing their chances of finding the right job. It’s therefore important to not only customize your cover letter and resume for each position that you have serious interest in, but also to research each respective company as well as its leadership and human resources staff in order to find commonalities and gain a sense of the type of employee their looking for.

  5. Mind Your Online Footprint: As familiar as we’ve become with the Internet and social media, people still seem to forget that online information is accessible to everyone. Before applying for any jobs, it’s a good idea to adjust your privacy settings on all social media accounts as well as have explanations ready for any publically available information that might reflect poorly upon you.

  6. Have a Positive Attitude: Not only is it important to stay positive in the face of rejection, but you also have to remember that employers are looking for people who fit their organizational culture and will be pleasant to work with every day. What’s more, an eagerness to learn can be enough to get you a serious look for jobs for which you might not have a perfect background.


What are the benefits of working for a small business?

" Biggest benefit is the relationships that you are able to build with your employer. It is easier to establish a level of rapport, trust, and confidence in your abilities when you work with a small business. That can usually lead to more flexibility in work assignments, work conditions, flextime, etc. This can be important to new entrants in the workforce. You can also see quicker decision making, integration of ideas, autonomy, and responsibility for the employee, and greater employee morale."


What are the risks associated with doing so?

The risk is that without the backing of a larger corporation, you can often see some of these businesses fail. Also, the opportunity for training, development, and job enrichment may be limited which can limit your options if you ever leave the small business. The risk of limiting yourself in the future is a real one.”


How can job seekers identify the right small business job?

“Do your research on the history of the business and what their track record is. Do not be afraid to ask questions, flip the script for them..."where do you see me in five years should I take this job." Contact the local Chamber of Commerce or check with the Better Business Bureau to see if there are any red flags. But the research is most important."


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