25 Best Michigan Small Cities to Start a Business in 2026

Got story updates? Submit your updates here. ›

A new national study from WalletHub has identified the 25 best small cities in Michigan for starting a business in 2026. The study analyzed over 1,300 small cities across the U.S. on factors like business environment, access to resources, and business costs. Several Michigan cities, including Kentwood, Holt, and suburbs of Metro Detroit, stood out as particularly attractive locations for entrepreneurs looking to launch a new venture.

Why it matters

Starting a small business can be a risky endeavor, so identifying the most favorable locations is crucial for entrepreneurs looking to maximize their chances of success. This study provides valuable insights for Michiganders interested in entrepreneurship, highlighting the cities across the state that offer the most supportive environments and resources for new businesses.

The details

WalletHub's methodology for ranking the best small cities for starting a business involved comparing cities across three main categories: business environment, access to resources, and business costs. They looked at nearly 20 different metrics, including startup growth, business survival rates, availability of workers and investors, office space affordability, and tax rates. Several Michigan cities stood out for their strong performance in these areas, with factors like affordable office space in Kentwood, shorter commute times in Holt, and steady population growth in many Metro Detroit suburbs contributing to their high rankings.

• The study was published on April 13, 2026.