Best North Carolina Cities for Small Business

According to B2B Reviews’ most recent research story, North Carolina is the best state for starting a business. With a survival and growth score of 22.63 and a state economy score of 14.02, North Carolina offers a business environment that encourages growth and profitability.

We wanted to examine North Carolina’s business environment more deeply, so we identified the state’s most populous cities and compared them across five key metrics to determine which cities are best for small businesses in 2025.

Take a look at our methodology to get an in-depth breakdown of how we determined our rankings.

Top 10 Cities in North Carolina for Small Businesses

Explore North Carolina’s top ten cities for small businesses in 2025.

1. Greensboro

Greensboro comes in first place for the best cities in North Carolina for small businesses. It ranked number one with a sales tax rate of 6.75% and within the top five for both the percentage of population and the percentage of employer firms, at 2.79% and 3.86%, respectively.

• City population: 302,296
• Population as a percentage of state population: 2.79%
• Population percent increase (2020-2023): 2.01%
• Percent of employer firms: 3.86%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $15.66

2. Burlington

Burlington takes second place for its low sales tax rate of 6.75% and affordable commercial real estate cost of $12.00 per square foot. This makes Burlington an excellent option for North Carolina businesses to consider.

• City population:: 60,032
• Population as a percentage of state population: 0.55%
• Population percent increase (2020-2023): 4.41%
• Percent of employer firms: 0.74%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $12.00

3. Wilmington

Wilmington comes in third. With 1.13% of the NC populous living there and 2.52% of all employer firms, Wilmington is a great place for small businesses to set up shop.

• City population:: 122,698
• Population as a percentage of state population: 1.13%
• Population percent increase (2020-2023): 5.98%
• Percent of employer firms: 2.52%
• Sales tax rate: 7.00%
• Average cost of commercial real estate (per SF): $22.18

4. Concord

Concord has 110,119 people, or 1.02% of North Carolina’s population, placing it among the top ten for that metric. It also scores high because it has 1.35% of employer firms and a relatively affordable average commercial real estate cost of $17.88 per square foot.

• City population:: 110,119
• Population as a percentage of state population: 1.02%
• Population percent increase (2020-2023): 4.99%
• Percent of employer firms: 1.35%
• Sales tax rate: 7.00%
• Average cost of commercial real estate (per SF): $17.88

5. High Point

High Point takes fifth place with its low sales tax rate of 6.75% and decent average commercial real estate cost of $18.23. The city also ranks within the top ten for the percentage of employer firms, at 1.43%. Small business owners looking for a steady and affordable NC city should consider High Point.

• City population:: 116,926
• Population as a percentage of state population: 1.08%
• Population percent increase (2020-2023): 1.81%
• Percent of employer firms: 1.43%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $18.23

6. Winston-Salem

As the fifth-biggest city in North Carolina, Winston-Salem has 2.33% of the population and 2.67% of all employer firms. The area's average commercial real estate cost is $17.11, making it the sixth-best city for small businesses.

• City population:: 252,975
• Population as a percentage of state population: 2.33%
• Population percent increase (2020-2023): 1.27%
• Percent of employer firms: 2.67%
• Sales tax rate: 7.00%
• Average cost of commercial real estate (per SF): $17.11

7. Greenville

Taking seventh place is Greenville. The city ranks for its low commercial real estate cost ($12.38 per square foot) and 1.17% percentage of employer firms. While the city has only 0.83% of North Carolina’s population, it has seen steady growth over the years, meaning it will continue to grow and support local businesses.

• City population: 90,053
• Population as a percentage of state population: 0.83%
• Population percent increase (2020-2023): 2.75%
• Percent of employer firms: 1.17%
• Sales tax rate: 7.00%
• Average cost of commercial real estate (per SF): $12.38

8. Gastonia

Gastonia comes in eighth on our list. It ranks for its impressive population increase of 4.24% from 2020 to 2023 and affordable commercial real estate costs of $18.00 per square foot. With 0.77% of the North Carolina population, Gastonia is a decent-sized city for small businesses.

• City population:: 83,942
• Population as a percentage of state population: 0.77%
• Population percent increase (2020-2023): 4.24%
• Percent of employer firms: 0.99%
• Sales tax rate: 7.00%
• Average cost of commercial real estate (per SF): $18.00

9. Statesville

Though it is one of the smaller cities in North Carolina, Stateville has seen an impressive population increase (5.68%) and boasts a low sales tax rate of 6.75%. Additionally, it has the second-cheapest commercial real estate cost on our list, at just $12.00 per square foot.

• City population:: 30,220
• Population as a percentage of state population: 0.28%
• Population percent increase (2020-2023): 5.68%
• Percent of employer firms: 0.60%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $12.00

10. Monroe

Monroe comes in tenth place for best North Carolina cities for small businesses. It makes our list because of its population increase of 9.00% as well as its low sales tax rate of 6.75%. Located only 26 miles (about 30 minutes) from Charlotte, NC, small businesses here can benefit from big-city customers without paying big-city costs.

• City population:: 37,797
• Population as a percentage of state population: 0.35%
• Population percent increase (2020-2023): 9.00%
• Percent of employer firms: 0.63%
• Sales tax rate: 6.75%
• Average cost of commercial real estate (per SF): $22.00

Methodology

Using data from the United States Census Bureau, we identified the most populous cities (those with more than 20,000 people) in North Carolina.

We ranked them according to five key metrics important to small business operations: the percentage of the state's population, the population increase from 2020 to 2023, the percentage of employer firms, the sales tax rate, and the average cost of commercial real estate.

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 determine the percentage, we used data from the Census Bureau to compare the city's population to the state’s. Cities with a higher percentage earned more points, which indicates a larger potential customer base.

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

We found the cities’ population in 2020 and 2023 to find the difference. We then calculated the percent increase. Cities with a more significant increase scored higher as a growing city is good for the economy and increases the consumer base.

Percent of Employer Firms—Total 20 Points

Using data currently available from the Census Bureau, we found the number of employer firms in each city’s county and compared it to the number of employer firms in the state. States with a higher percentage earned more points because this reflects a thriving business ecosystem.

Sales Tax Rate—Total 20 Points

We combined the sales tax rates for each city’s county and the state. Cities with lower total sales tax rates scored better because it indicates less financial burden on small businesses.

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

Using data from various retail services, we found the average cost of commercial real estate per square foot in each city. States with a smaller average cost scored better, reflecting a more affordable business environment for small business owners.

The Bottom Line

Offering a dynamic and business-friendly environment, North Carolina is an excellent state for entrepreneurs looking to start or expand their businesses.

With growing populations, favorable tax rates, and competitive commercial real estate costs, the cities on our list provide valuable opportunities for small business success.

As always, it’s important to research an area thoroughly before starting your business in a new city. If you’re considering launching or relocating your business to one of the cities on our list, please take note of these key steps:

• Research Local Resources: See if there are any business grants, tax incentives, or small business support programs offered by or near the city.
• Explore Commercial Real Estate Options: Real estate costs differ whether you rent or purchase the space. Compare both prices and see which works best for your finances.
• Connect with Local Business Networks: A support network can make a significant difference. Look into local chambers of commerce, networking groups, and entrepreneurial communities to build relationships
• Know Your Customer Base: Study local demographics, competition, and economic growth to ensure your business fits the demand.

With the right strategy and location, your business can thrive in North Carolina’s growing economy. However, if you’re interested in a city outside of North Carolina, take a look at our research for the best U.S. cities for small businesses.

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