Small Town Advantages for Businesses

As a startup company, competing with established businesses in a large metropolitan area can be daunting and challenging. In a smaller town, businesses are able to better establish themselves and grow with more freedom than in a big city such as Chicago, New York, or Boston. Each business brings a unique component to their location and not every business can flourish in the same place. For many businesses, small towns offer ample opportunities for growth and development. Here are a look at some of the ways small towns can be beneficial for a company.

More Knowledgeable About the Competition

As opposed to a large city, smaller towns give businesses the opportunity to better assess other local businesses and the impact they are having on the town. This gives businesses the opportunity to fill a need within the town with a service or good that is not yet available. Competing against a well-known, local favorite restaurant will be very challenging. Having this knowledge in advance will allow you to change your location or change your services/products to allow you to have the most success with your business.


Taxes and finances play a crucial role in any business. Smaller towns will have a significantly lower tax rate than larger metropolitan areas. Large cities often encourage new businesses and carry a large, talented workforce, but are ultimately more challenging for businesses to grow in because of their higher tax levels and stricter regulations. Smaller towns can cut down costs on taxes, leaving your business with more money to expand and develop. In addition to small towns helping businesses when it comes to taxes, businesses also help the local town’s economy. Even a lower tax rate than a metropolitan area will still bring in more funds to a local government, allowing more money to go to roads, schools and improving public services.

Loyal Customers

Small towns are known for their loyalty to local businesses. This is heightened even more when large corporations are not in the area. Local individuals will often times support and encourage local economic growth. Businesses understand that this may limit growth at times, but a consistent economic stability will always be there. Fighting for a positive image is much easier with a local community to stand behind you and your business. Small businesses won’t always be able to compete with these large organizations in inventory or turnaround time, but they can compete with them in customer experience.

Business-to-Business Cooperation

Local businesses often band together to support one another in a small town. Referring customers to other positive local businesses can increase your credibility and keep customers coming back. The referrals from other local businesses can help build your loyal customer base and bring in new customers you wouldn’t have ordinarily attracted. Local businesses can more easily work together in a smaller town, giving more opportunities to both organization to grow and expand. With businesses working together, they can help each other prosper in the age of large established corporations.

About the Author: Michelle is a guest contributor from Lansing Economic Area Partnership, an organization designed to help businesses, both old and new, in Lansing, Michigan grow and prosper.

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