These Michigan Cities Are Among the Best Places to Start a Business

If you've ever kicked around the idea of starting your own business here in Michigan, you might be sitting on a better opportunity than you think.

A new study from WalletHub looked at more than 1,300 small cities across the United States to determine the Best and Worst Small Cities to Start a Business in 2026. When you zoom in on Michigan, there are a handful of communities that really stand out as strong places to launch something new.

READ MORE: This Michigan Town Was Just Named One of the 10 Best Suburbs in America

So, what makes a small city a good place to think about starting a business?

How WalletHub Ranked the Best Small Cities

WalletHub was pretty methodical about figuring that out. They compared cities all around the nation across three major categories:

• Business environment (things like startup growth, business survival rates, and overall economic momentum)
• Access to resources (how easy it is to find workers, investors, and customers)
• Business costs (including office space, labor costs, taxes, and general affordability)

Dig a little deeper, and they actually used nearly 20 different metrics — everything from how fast small businesses are growing to how expensive it is to rent space or hire employees.

How did Michigan do?

How Michigan Cities Stack Up

Some cities — like Kentwood, for example — stand out for super-affordable office space, which can be a game-changer when you're just getting started. Others benefit from steady population growth, shorter commute times (like Holt), and strong local economies that make it easier to attract both employees and customers.

Of course, Metro Detroit had its fair share of suburbs make the list, but plenty of spots in West Michigan and Mid-Michigan showed up too.

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Curious which small cities in Michigan rank as the best places to start a business? Take a look below — you might be surprised!