Best Utah Cities for Small Businesses

Where you run your business can significantly impact your chances of success, especially in a rapidly growing state like Utah. With strong economic fundamentals, favorable tax policies, and a rising population, Utah offers plenty of opportunity, but some cities stand out more than others.

To find out which cities are best positioned for small business success, the B2B Reviews Research Team evaluated a range of data points, including local population figures, the share of employer firms, county-level sales tax rates, and average commercial rent costs.

As Utah continues to attract entrepreneurs and investors alike, our rankings reveal the top cities for business growth and communities that may be worth watching. Whether you’re starting fresh or relocating, this guide can help you decide where to build your future.

Take a look at our methodology to see how we built our rankings.

Top 10 Cities in Utah for Small Businesses

1. St. George

St. George ranks as the number one city in Utah for small businesses, thanks to its potent mix of economic stability, business presence, and favorable tax environment. As one of the state’s most populous cities, St. George offers entrepreneurs access to a large and growing customer base—an advantage reinforced by consistent population growth in recent years. It also stands out for its dense concentration of employer firms, reflecting a thriving business community and healthy local economy. What truly sets St. George apart, though, is its ultra-competitive tax landscape: it has the lowest county sales tax rate in the entire state, helping business owners reduce overhead and improve margins. While commercial rents are higher than in other Utah cities, the city’s overall business climate makes it a top choice for launching or expanding a small business.

• City population: 104,578
• City population as a percentage of the state: 2.99%
• Percent Increase of Population from 2020-2023: 9.04%
• Percent of Employer Firms: 5.36%
• County Sales Tax Rates: 11.15%
• Average Commercial Real Estate Rent per Square Foot: $55

2. Layton

Layton’s balanced combination of affordability and business potential makes it Utah’s second-best city overall for small businesses. Layton, one of the state’s more populated cities, provides a strong clientele without the expense or traffic of bigger cities. Its commercial real estate is some of the most reasonably priced in Utah, making it more straightforward for new and expanding companies to find space without exceeding their spending limits. Additionally, Layton is notable for having a healthy percentage of employer firms and a comparatively low local sales tax rate, which indicates a vibrant small business community and an encouraging atmosphere for entrepreneurs. Layton is ideal for people wishing to start or grow their businesses because of its consistent population growth and business-friendly environment.

• City population: 83,516
• City population as a percentage of the state: 2.39%
• Percent Increase of Population from 2020-2023: 2.16%
• Percent of Employer Firms: 2.41%
• County Sales Tax Rates: 11.85%
• Average Commercial Real Estate Rent per Square Foot: $22.13

3. Logan

Logan ranks as the third-best city in Utah for small businesses, thanks to a balanced mix of affordability, growth, and business presence. While not among the state’s largest cities, it holds a solid spot in overall population size and continues to grow steadily. Logan also stands out for its competitive tax environment, offering one of Utah’s lowest county sales tax rates—an essential factor for stabilizing operating costs. The city is also home to a healthy share of employer firms. It provides relatively affordable commercial real estate, making it an attractive option for entrepreneurs looking to grow in a stable yet expanding market.

• City population: 55,250
• City population as a percentage of the state: 1.59%
• Percent Increase of Population from 2020-2023: 5.14%
• Percent of Employer Firms: 2.16%
• County Sales Tax Rates: 11.70%
• Average Commercial Real Estate Rent per Square Foot: $30

4. Cedar City

Cedar City is the fourth-best city overall for small businesses in Utah, thanks to its balance of growth, affordability, and business activity. While it’s not among the state’s largest urban hubs, Cedar City still places in the top quarter for population size, giving it a solid customer base without the high costs of bigger cities. The city is experiencing impressive growth, landing among the top 10 in the state for population increase, an encouraging sign for future demand. Cedar City also supports a healthy mix of businesses, with a mid-range share of employer firms, and keeps costs manageable for entrepreneurs with one of the lowest county sales tax rates in Utah and commercial rents that are more affordable than in many other cities. This combination of expansion, low overhead, and business presence makes Cedar City a strategic choice for small business success.

• City population: 39,942
• City population as a percentage of the state: 1.14%
• Percent Increase of Population from 2020-2023: 13.05%
• Percent of Employer Firms: 1.73%
• County Sales Tax Rates: 11.35%
• Average Commercial Real Estate Rent per Square Foot: $36

5. South Jordan

Due to its robust economic stability, business presence, and growth, South Jordan is ranked as the fifth-best city in Utah for small businesses. Being one of the state’s more populated cities, South Jordan has a substantial and expanding clientele—its population has increased significantly in recent years. The city is notable for having a comparatively high proportion of employer firms, which indicates a vibrant and encouraging business community. Even though commercial real estate costs are higher than in other Utah cities, South Jordan’s strong local economy and consistent population growth help offset these costs, making it a desirable place for business owners to start or grow their enterprises.

• City population: 84,528
• City population as a percentage of the state: 2.44%
• Percent Increase of Population from 2020-2023: 9.59%
• Percent of Employer Firms: 2.94%
• County Sales Tax Rates: 11.95%
• Average Commercial Real Estate Rent per Square Foot: $50

6. Salt Lake City

Salt Lake City is the sixth-best city for small businesses in Utah because it has a strong business environment and a big market. It is the biggest city in Utah and offers business owners exposure to a big and diverse market. It is also Utah’s largest employer in terms of all firms as a percentage, so it is a business hub. While its commercial property costs are some of the highest in the state, Salt Lake City’s massive economic matrix and progressive tax environment help to balance those out. With consistent population growth and an expanding business base, the city remains a wise choice for entrepreneurs who wish to expand.

• City population: 209,593
• City population as a percentage of the state: 6.04%
• Percent Increase of Population from 2020-2023: 5.56%
• Percent of Employer Firms: 10.27%
• County Sales Tax Rates: 11.95%
• Average Commercial Real Estate Rent per Square Foot: $84

7. Hurricane

Hurricane stands out as the seventh-best city in Utah for small businesses thanks to its rapid growth and cost-friendly environment. Although it has a smaller population than many other cities in the state, Hurricane has experienced one of the fastest rates of population increase in recent years, signaling a rising customer base and expanding workforce. Local entrepreneurs benefit from the lowest sales tax rate and most affordable commercial real estate prices in the state, significantly reducing business overhead costs. While the percentage of employer firms is lower than average, the city’s booming growth and highly affordable business environment make it a promising place for startups and small businesses to take root and thrive.

• City population: 23,959
• City population as a percentage of the state: 0.68%
• Percent Increase of Population from 2020-2023: 18.75%
• Percent of Employer Firms: 0.66%
• County Sales Tax Rates: 11.15%
• Average Commercial Real Estate Rent per Square Foot: $13.90

8. Millcreek

Millcreek ranks as the eighth-best city in Utah for small businesses, thanks to its balanced mix of affordability and business presence. While it may not be among the fastest-growing cities in the state, Millcreek maintains a solid population size that offers a dependable customer base for local enterprises. The city boasts a relatively high percentage of employer firms, reflecting a healthy and engaged business environment. Business owners also benefit from competitive county sales tax rates and some of the state’s lowest commercial real estate rental costs—factors that help reduce overhead and improve profit margins. These advantages make Millcreek an appealing option for entrepreneurs looking to establish or expand their operations in Utah.

• City population: 62,205
• City population as a percentage of the state: 1.79%
• Percent Increase of Population from 2020-2023: -1.22%
• Percent of Employer Firms: 2.18%
• County Sales Tax Rates: 11.95%
• Average Commercial Real Estate Rent per Square Foot: $19.39

9. Ogden

​Thanks to its strong business environment and sizable population, Ogden is tied as the eighth-best city in Utah for small businesses. As one of the state’s larger cities, Ogden offers access to a broad customer base and many established employer firms, contributing to a healthy business ecosystem. While population growth has been moderate in recent years, the city’s competitive sales tax rate and relatively affordable commercial real estate help make it an attractive place to launch or expand a business. With a solid economic foundation and a supportive environment for entrepreneurs, Ogden remains a compelling option for small business owners in the state.

• City population: 87,267
• City population as a percentage of the state: 2.50%
• Percent Increase of Population from 2020-2023: 0.26%
• Percent of Employer Firms: 2.89%
• County Sales Tax Rates: 11.95%
• Average Commercial Real Estate Rent per Square Foot: $40

10. West Valley City

Ranked as the tenth-best city in Utah for small businesses, West Valley City stands out for its sheer size and vigorous entrepreneurial activity. As the second-largest city in the state, it provides a large consumer base and ample workforce, making it attractive for new and growing businesses. The city also ranks high in its share of employer firms, signaling a healthy and active business environment. While its population growth has been relatively modest in recent years, West Valley City offers competitive advantages like reasonable commercial real estate costs and a favorable local sales tax rate—factors that help lower operating expenses for business owners looking to shop in a bustling urban area.

• City population: 134,470
• City population as a percentage of the state: 3.92%
• Percent Increase of Population from 2020-2023: -1.72%
• Percent of Employer Firms: 3.01%
• County Sales Tax Rates: 11.95%
• Average Commercial Real Estate Rent per Square Foot: $40

Methodology

B2B Reviews evaluated cities throughout Utah to identify the top locations for small business success, using five key indicators: overall population, recent population growth, the proportion of employer firms, county-level sales tax rates, and average commercial real estate rent.

Each city earned a score based on its performance in these categories, which were weighted and combined into a 100-point scale. A perfect score of 100 reflects the most favorable conditions for small businesses in Utah.

City Population as a Percentage of the State — Total 20 Points

We calculated each city’s share of Utah’s total population to measure market size and economic activity. Towns with a larger proportion of the state’s population earned more points.

Percentage of Population Growth (2020-2023) — Total 20 Points

We measured growth by comparing the population change between 2020 and 2023, then dividing that change by the 2020 population. Cities with the fastest growth rates were scored higher.

Percentage of Employer Firms — Total 20 Points

We determined each city’s share of Utah’s total employer firms to assess business density. A higher share indicated a stronger business ecosystem, resulting in a higher score.

County Sales Tax Rate — Total 20 Points

We combined the state’s base sales tax rate with each county’s local rate to find the total applicable tax. Cities in counties with lower overall sales tax rates earned more points.

Average Commercial Real Estate Rent (per square foot) — Total 20 Points

We ranked cities from lowest to highest based on the average price per square foot for commercial space. More affordable rent translates to higher scores in this category.

The Bottom Line

Utah offers a dynamic and supportive environment for small businesses, with cities nationwide presenting diverse advantages for entrepreneurs. Our rankings highlight top-performing towns based on factors like population size, recent growth trends, concentration of employer firms, local tax rates, and affordability of commercial space. South Jordan takes the top spot thanks to its vigorous economic activity and growing business landscape.

B2B Reviews created this comparison to guide entrepreneurs and business owners in choosing the most strategic location to launch or expand their operations. Whether you’re seeking low overhead costs, access to a large customer base, or a high-growth community, Utah has a city that aligns with your goals.

For small business success, we recommend you:

• Look into local business incentives and regulations
• Consider commercial real estate pricing in your decision-making
• Connect with regional small business support networks
• Stay informed on available grants, funding, and tax benefits
• Choose cities with positive long-term population trends for stability and growth

By selecting a Utah city that aligns with your business needs and capitalizing on local resources, small business owners can build lasting success in one of the West’s most promising states for entrepreneurship.

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