Best Ohio Cities for Small Businesses

Ohio is the second-best state to start a business, according to the latest B2B Reviews study. It has a business growth and survival rate of 23.94 and an economy score of 15.25, making it a great place for new and expanding entrepreneurs to consider.

To get a closer look at the second-place winner, B2B Reviews looked at Ohio’s most populous cities and their business potential. We compared these cities across five key metrics to discover which cities are best for small businesses in 2025.

To learn more about how we determined our rankings, read our methodology below.

Top 10 Cities in Ohio for Small Businesses

Explore Ohio's top cities for small businesses in 2025.

1. Elyria

Elyria takes first place on our list. With a 6.50% sales tax rate, the lowest rate in the state and the second-lowest average cost of commercial real estate ($7.69 per square foot), Elyria is great financially for small business owners. It is also one of the few cities in Ohio with a positive population increase within the last few years, at 0.82%.

• City population: 53,117
• Population as a percentage of state population: 0.45%
• Population percent increase (2020-2023): 0.82%
• Percent of employer firms: 0.55%
• Sales tax rate: 6.50%
• Average cost of commercial real estate (per SF): $7.69

2. Akron

Akron takes second place with a population percentage of 1.60%, the fifth largest in the state. Despite seeing a decrease in population over recent years (similar to many cities on our list), it has a low sales tax rate of 6.75% and the fifth largest percentage of employer firms, at 1.82%.

• City population: 188,701
• Population as a percentage of state population: 1.60%
• Population percent increase (2020-2023): -0.76%
• Percent of employer firms: 1.82%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $14.09

3. Canton

Canton is the third-best city in Ohio for small businesses due to its low average cost of commercial real estate, at $10.92 per square foot, which is the sixth lowest in the state. It ties for first with a low sales tax rate of 6.50%.

• City population: 69,197
• Population as a percentage of state population: 0.59%
• Population percent increase (2020-2023): -2.03%
• Percent of employer firms: 0.74%
• Sales tax rate: 6.50%
• Average cost of commercial real estate (per SF): $10.92

4. Middletown

Middletown follows closely behind with an equally affordable sales tax rate (6.50%) and a decent population increase of 0.89%. Its average commercial real estate cost of $12.33 per square foot also makes it a great place for business owners.

• City population: 51,478
• Population as a percentage of state population: 0.44%
• Population percent increase (2020-2023): 0.89%
• Percent of employer firms: 0.49%
• Sales tax rate: 6.50%
• Average cost of commercial real estate (per SF): $12.33

5. Columbus

Columbus takes fifth place on our list. As the largest city in Ohio, Columbus scores first for population percent at 7.75%. However, it ranks eleventh for population increase between 2020 and 2023, with only a 0.75% increase. Columbus also has the highest percentage of employer firms (8.04%); however, its higher sales tax rate (7.50%) and average commercial real estate cost ($15.01 per square foot) earned it fifth place.

• City population: 913,175
• Population as a percentage of state population: 7.75%
• Population percent increase (2020-2023): 0.75%
• Percent of employer firms: 8.04%
• Sales tax rate: 7.50%
• Average cost of commercial real estate (per SF): $15.01

6. Hamilton

Hamilton comes in sixth because of its low sales tax rate of 6.50% and average commercial real estate cost of $11.50. Despite seeing a decrease in population, it’s the tenth-largest city, with 0.53% of the state’s population.

• City population: 62,997
• Population as a percentage of state population: 0.53%
• Population percent increase (2020-2023): -0.65%
• Percent of employer firms: 0.49%
• Sales tax rate: 6.50%
• Average cost of commercial real estate (per SF): $11.50

7. Cuyahoga Falls

Coming in seventh is Cuyahoga Falls. It earns a place on our list because of its affordable commercial real estate of $10.93 per square foot and a low sales tax rate of 6.75%. It also houses a decent percentage of the state’s employer firms, at 0.59%.

• City population: 50,742
• Population as a percentage of state population: 0.43%
• Population percent increase (2020-2023): -0.61%
• Percent of employer firms: 0.59%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $10.93

8. Cincinnati

Ohio’s third-largest city takes eighth place. Cincinnati has 2.64% of the state’s population, a population increase of 0.48%, and a large percentage of employer firms, at 3.18%. However, the city’s higher sales tax rate (7.80%) and the average cost of commercial real estate ($14.85) make Cincinnati the eighth best for small businesses.

• City population: 311,097
• Population as a percentage of state population: 2.64%
• Population percent increase (2020-2023): 0.48%
• Percent of employer firms: 3.18%
• Sales tax rate: 7.80%
• Average cost of commercial real estate (per SF): $14.85

9. Beavercreek

Beavercreek comes in ninth because of its population increase of 1.25% and lower sales tax rate of 6.75%. The city also has a decent percentage of employer firms, at 0.56%, making it a good place for small businesses looking for a growing consumer base.

• City population: 47,193
• Population as a percentage of state population: 0.40%
• Population percent increase (2020-2023): 1.25%
• Percent of employer firms: 0.56%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $17.15

10. Fairfield

Fairfield rounds out our list of the best cities for small businesses. It scores high because of its low sales tax rate (6.50%) and average commercial real estate cost of $11.41. It also has a decent percentage of employer firms, making it an affordable and competitive location for business owners.

• City population: 44,447
• Population as a percentage of state population: 0.38%
• Population percent increase (2020-2023): -1.02%
• Percent of employer firms: 0.45%
• Sales tax rate: 6.50%
• Average cost of commercial real estate (per SF): $11.41

Methodology

Using the latest data from the United States Census Bureau, B2B Reviews gathered a list of Ohio’s most populous cities, those with no less than 20,000 people.

We then ranked these cities based on five key metrics that influence small businesses: the city’s population as a percent of the state’s, the population increase from 2020 to 2023, the percentage of employer firms, the county and state sales tax rate, and the average cost of commercial real estate per square foot.

Cities were ranked within each metric and scored on a 100-point scale to determine the best for small businesses.

Population as a Percentage of State Population—Total 20 Points

To find the percentage of the population that lives in each city, B22B Reviews used Census Bureau data to compare the city population to the state’s population. Cities with a higher percentage scored higher.

Population Percent Increase (2020-2023)—Total 20 Points

We found each city’s population in 2020 and compared it to its population in 2023. We then calculated the percent increase. Cities with a more significant increase score better.

Percent of Employer Firms—Total 20 Points

To determine the percentage of employer firms in each city, B2B Reviews used the most recent Census Bureau data to find the number of employer firms in each city and compared that to the number of employer firms in the state. A higher number of employer firms led to a better score.

Sales Tax Rate—Total 20 Points

We looked at sales tax rates for the county and state. Areas with a lower combined sales tax rate scored better as this indicates less financial burden to small businesses and consumers.

Average Cost of Commercial Real Estate (per SF)—Total 20 Points

B2B Reviews determined the average cost of commercial real estate per square foot in each city. Cities with a smaller average cost earned more points.

The Bottom Line

Ohio offers many great locations for business owners. Whether you’re looking for affordable commercial real estate costs or you’re looking for a populous city, the cities on our list have something to offer.

Researching a location before setting up shop there is vital to a successful business. When looking at cities in Ohio, consider the following:

• Commercial Real Estate Options: Real estate costs differ from city to city. However, the cost isn’t the only factor. Choose a city that has places that serve your business best, whether that’s location, layout, or size.
• Local Resources: Check to see if there is any financial support for businesses in that city through grants or tax incentives. You should also consider networking opportunities in the area.
• Consumer Base: Sometimes, an area might seem great for a business, but the locals aren’t interested in your products. Make sure the city you choose has a viable consumer base to ensure revenue and growth.
• Business Turnover: Some areas are notorious for business turnover. It’s always a good idea to see how long businesses last in the city to determine whether it will work for you.

Ohio is a great state for growing businesses to consider. However, if you’re interested in a city outside of Ohio, look at our research for the best U.S. cities for small businesses.

Fair Use Statement

Feel free to share our findings for non-commercial purposes; however, we ask you provide a link back to this page so readers can see our full methodology.