North Chicago Ranked Top Illinois City for Starting a Business

New WalletHub study names the suburb as the best small city in the state for entrepreneurs.

Apr. 16, 2026 at 7:38pm

Got story updates? Submit your updates here. ›

A minimalist, high-contrast studio photograph featuring a polished metal desk organizer, a sleek laptop, and a glass of water on a clean white background, representing the tools and environment of a modern startup or small business.North Chicago's thriving entrepreneurial ecosystem provides the tools and resources for new businesses to launch and succeed.North Chicago Today

According to a new WalletHub study, the city of North Chicago has been ranked as the number one small city in Illinois and 56th nationwide for starting a business. The rankings evaluated more than 1,300 cities with populations under 100,000, looking at factors like business environment, access to financing, and overall costs. City leaders say the recognition reflects their ongoing efforts to support entrepreneurs and drive long-term economic growth.

Why it matters

Smaller cities like North Chicago can offer advantages for new businesses, including lower overhead costs, closer relationships with customers, and less competition. The report also notes that small markets can be more resilient during economic challenges, giving startups a better chance to survive periods of uncertainty.

The details

North Chicago's location along Lake Michigan and proximity to Naval Station Great Lakes and Rosalind Franklin University contribute to its strong business ecosystem. City officials say they plan to build on this momentum by continuing to invest in initiatives aimed at attracting new businesses while supporting those already operating in the community.

  • The WalletHub study was recently published in April 2026.

The players

North Chicago

A city in Lake County, Illinois that was ranked the number one small city in the state for starting a business according to a new WalletHub study.

WalletHub

A personal finance website that conducted a study evaluating more than 1,300 small cities across the United States based on business environment, access to financing, and overall costs.

Leon Rockingham Jr.

The Mayor of North Chicago, who stated that the city's top ranking reflects their ongoing commitment to cultivating a strong economic environment and supporting entrepreneurs.

Chip Lupo

A WalletHub analyst who commented that smaller cities can offer advantages for new businesses, including lower overhead costs, closer relationships with customers, and less competition.

Got photos? Submit your photos here. ›

What they’re saying

“This distinction reflects our ongoing commitment to cultivating a strong economic environment and supporting entrepreneurs.”

— Leon Rockingham Jr., Mayor of North Chicago

“Smaller cities can offer advantages that larger markets cannot, including lower overhead costs, closer relationships with customers and less competition.”

— Chip Lupo, WalletHub Analyst

What’s next

City officials say they plan to build on the momentum from this ranking, continuing to invest in initiatives aimed at attracting new businesses while supporting those already operating in the community.

The takeaway

North Chicago's top ranking as the best small city in Illinois for starting a business reflects the city's ongoing efforts to cultivate a strong entrepreneurial ecosystem. The advantages of smaller cities, such as lower costs and less competition, have helped North Chicago become an attractive destination for new businesses looking to launch and succeed.