New data from Squarespace, an all-in-one website builder, has identified the most supportive cities for small businesses by scoring each city out of 100 based on population growth, combined individual income and gross receipts taxes, local fiscal support, employment rate, median household income, and average real estate prices. And the data shows Phoenix ranks as the No. 7 most supportive city in the U.S. for small businesses.
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Top 20 Supportive Cities for Small Businesses in the U.S.
| Rank | City | Population | Population Growth | Combined Individual Income Tax | Gross Receipts Tax | Local Fiscal Support Offered | Employment Rate | Median Household Income | Average Real Estate Prices |
| 1 | Fort Worth, TX | 1M | 13.72% | 0.00% | No | Yes | 96.4 | $79,507 | $295,822 |
| 2 | Jacksonville, FL | 1M | 9.12% | 0.00% | No | Yes | 95.4 | $69,872 | $282,367 |
| 3 | San Antonio, TX | 1.5M | 9.10% | 0.00% | No | Yes | 96.3 | $65,056 | $247,132 |
| 4 | Seattle, WA | 801K | 8.18% | 0.00% | Yes | Yes | 95 | $123,860 | $848,869 |
| 5 | Charlotte, NC | 977K | 11.75% | 4.25% | No | Yes | 96.4 | $82,068 | $393,846 |
| 6 | Dallas, TX | 1.3M | 2.61% | 0.00% | No | Yes | 96.4 | $70,518 | $305,523 |
| 7 | Phoenix, AZ | 1.7M | 5.63% | 2.50% | No | Yes | 96.5 | $81,332 | $407,665 |
| 8 | Houston, TX | 2.4M | 5.95% | 0.00% | Yes | Yes | 95.8 | $64,813 | $261,976 |
| 9 | Austin, TX | 1M | 4.30% | 0.00% | Yes | Yes | 96.8 | $93,658 | $500,627 |
| 10 | Denver, CO | 734K | 2.38% | 4.40% | No | Yes | 96.4 | $94,718 | $530,920 |
| 11 | Chicago, IL | 2.7K | -1.31% | 4.95% | No | Yes | 95.5 | $77,902 | $312,457 |
| 12 | Hempstead, NY | 800K | 1.31% | 6.50% | No | Yes | 96.1 | $90,420 | $616,733 |
| 13 | Indianapolis, IN | 893K | 0.72% | 5.00% | No | Yes | 97.5 | $66,219 | $226,528 |
| 14 | Columbus, OH | 946K | 4.43% | 5.25% | Yes | Yes | 96.4 | $66,082 | $243,005 |
| 15 | San Diego, CA | 1.4M | 2.13% | 9.30% | No | Yes | 95.6 | $108,077 | $989,768 |
| 16 | San Jose, CA | 1M | -1.83% | 9.30% | No | Yes | 96 | $146,427 | $1,435,993 |
| 17 | Philadelphia, PA | 1.5M | -2.52% | 6.81% | Yes | Yes | 96 | $61,953 | $229,411 |
| 18 | New York City, NY | 8.3M | -4.50% | 10.38% | No | Yes | 95.5 | $80,483 | $812,534 |
| 19 | Los Angeles, CA | 3.8M | -0.68% | 9.30% | Yes | Yes | 95.2 | $81,939 | $941,985 |
| 20 | San Francisco, CA | 800K | -8.11% | 9.30% | Yes | Yes | 95.9 | $140,970 | $1,299,230 |
Phoenix, Arizona, is the No. 7 Most Supportive City for Small Businesses
Phoenix, Arizona, ranks as the #7 most supportive city for small businesses in the U.S. The city is one of the more affordable major cities in the U.S., with average real estate prices of $407,665. A 2.50% combined individual income tax burden, with no gross receipts tax, allows businesses to keep more of their profits. Additionally, a population growth rate of 5.63%, a median household income of $81,332, and an employment rate of 96.5% all suggest that small businesses in Phoenix will benefit from customers with higher spending power, and that the owner will have a diverse selection of qualified local applicants to choose from while building their team. Phoenix also provides local fiscal support for small businesses through grants, loans, and initiatives like the Phoenix Small Business Resiliency Grants Program.
