ST. GEORGE — Southern Utahns interested in being their own bosses are in luck, as WalletHub listed Washington City, St. George and Cedar City in the top five best small cities for starting a business.
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In their recent article, WalletHub said small cities offer unique advantages and disadvantages for small business owners.
“As many veteran entrepreneurs – and failed startups – understand well, bigger is not always better,” the article said. “A city with a smaller population can offer a greater chance of success, depending on an entrepreneur’s type of business and personal preferences.”
WalletHub compared 1,334 small cities for business friendliness across three dimensions: business environment, access to resources and business costs. Using 18 metrics under each dimension, each city was graded on a 100-point scale, with Washington City receiving the highest score. St. George was given the second-highest score and Cedar City came in fourth.
Additionally, Washington City and St. George were both listed as cities with the highest average growth in the number of small businesses and most startups per capita. St. George received the highest score in the business environment dimension.
Gov. Spencer Cox tweeted an image featuring the five Utah cities that were listed in the top 10.
“Once again, Utahns are being recognized for their innovative and entrepreneurial spirits,” he said.
Rep. Chris Stewart retweeted the image, saying he’s thrilled but not surprised.
“This is what happens when a state proudly empowers the American worker and encourages their innovation,” he said.
Welcoming business in Washington City
Staheli said he was “thrilled” about Washington city’s ranking, and that it’s indicative of the opportunities available to local business owners.
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“It shows that we’ve created a culture and a framework within which businesses can be successful,” he said.
Washington City is among the fastest-growing cities in the nation and businesses have historically lagged behind housing, Staheli said, adding that there is a demand for products and services and entrepreneurs are starting to notice.
The city has minimal regulation for starting and operating a business and offers low tax rates, which Staheli said is helpful for business owners in managing their costs and making a profit.
“There’s just a good overall environment that I think is business-friendly,” he said.
The city is looking to extend Washington Fields road south toward St. George Regional Airport and has identified some areas where businesses they are working with could build facilities for warehousing and distribution, which Staheli said will create jobs.
Additionally, the city has worked with the Office of Planning and Zoning to define areas for commercial growth while preserving the “hometown feel” of neighborhoods. Staheli said businesses should also contribute to citizens’ quality of life.
“And we’re really asking the question to business owners, ‘How will your project or your business benefit Washington City and those who live here?'”
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The city isn’t “chasing growth,” Staheli said, but is a willing partner on commercial projects in the right situations, adding that citizens want places to shop and recreate, and people need jobs.
“We think that we can continue to create a sense of community and a lifestyle that we enjoy while bringing in businesses who contribute,” he said.
Sales tax revenue collected from local businesses provides funding to public safety in Washington City, Staheli said, adding that property taxes cover approximately a third of that need.
“And so what we’re counting on is high-quality businesses that not only contribute to our community but also provide for some of that sales tax revenue that allows us to properly fund those core functions of business which are public safety, public spaces, including your roads and parks and those types of things,” he said.
Washington City has fewer established businesses. Comparing it to a blue chip stock, Staheli said the city has a high upside potential that’s currently untapped, adding that he hopes to develop a “balanced portfolio” of both home-based and brick and mortar businesses that fill a variety of niches.
“I would invite anyone considering, whether you’re a veteran business owner or a startup new venture, to reach out and talk to me,” he said.
‘Center of the West’
Cedar City Mayor Garth Green said he’s pleased and flattered that the city was named number four in the WalletHub study, adding that when those outside the community see it favorably, it means the city is likely doing well.
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“Obviously, we pride ourselves in being a favorable business environment,” he said. “I am a businessman and even though there may be those who say they don’t want growth, most people do like more businesses, better wages, a vibrant economy, even though they may not want the housing that goes with it.”
The city is looking to continue encouraging business growth, particularly near the North Interchange. Green said he considers Cedar City a small town and infrastructure will be a challenge, as there is only one main road, plus the freeway, both of which facilitate north-south travel.
However, Green said Cedar City is the “center of the West,” and hopes that the city’s location is one of the major factors attracting businesses, adding that local online businesses can serve most of the west coast with two-day ground shipping.
Additionally, the city is looking to grow in manufacturing and distribution.
The Cedar City Chamber of Commerce, the Women’s Business Center of Utah and Cedar City Business and Innovation Center are available to those thinking of starting a business.
Those new to business should test the market, learn about their industry and what their customers want before they begin selling, Green said, adding that everyone that starts a business has a big dream but they need to collect the data to make viable decisions.
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