Tonawanda ranked one of the best small cities to start a business

Posted at 11:03 AM, Apr 17, 2017
and last updated 2017-04-17 11:03:31-04

Looking to start a business, but not sure if you're in the right spot to succeed?

There's good news for Western New York entrepreneurs -- we have a small business hot spot right here in our corner of the country.

A WalletHub analysis of the best small cities to start a business reveals Tonawanda as the fourteenth choice on 2017's list.

The analysis compared more than 1,200 small-sized cities, focusing on places with a population between 25,000 and 100,000 people.

The study also took a look at things like the average growth of small businesses, investor access and labor costs. Each metric of the analysis was given a value on a 100-point scale, with 100 points representing the most ideal conditions for starting a business. The analysis was broken down as follows:

Business Environment - Total Points: 50, Each metric worth about 8.33 points

  • Average length of work week (in hours)
  • Average growth in number of small businesses
  • Number of startups per capita
  • Average revenue per business
  • Average growth of business revenues
  • Industry variety

Access to Resources - Total Points: 25, Each metric worth about 4.17 points

  • Financing accessibility -- Calculated as follows: Total Annual Value of Small-Business Loans / Total Number of Small Businesses
  • Investor access
  • Human-Resource availability -- Calculated as follows: Number of Unemployed Residents - Number of Job Openings
  • Higher-Education assets -- This measures the average university rank (based on U.S. News & World Report's Best Colleges Rankings) and the number of students enrolled per 1000 residents
  • Workforce educational attainment -- This measures the percentage of the population with at least a bachelor's degree
  • Working-Age population growth -- This population focuses on ages 16-64

Business Costs - Total Points: 25, Each metric worth about 6.25 points

  • Office-Space affordability -- This measures the per-square-foot cost of commercial office space
  • Labor costs -- This measures the median annual income
  • Corporate Taxes
  • Cost of living

Based on these measurements, Tonawanda received a total score of 48.56, not far behind the number one spot, Holland, Michigan, which received a score of 50.22.

Click here for WalletHub's full report.