Best Cities for Small Business in Alaska
Alaska ranks #36 of 50 for small business, with a small business score of 46.8. Chena Ridge is its best city for small business at 76.5.
- Alaska, all states
- #36 of 50
- Population
- 5,881
What Small Business Should Know About Alaska
Alaska ranks #36 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 74/100 signals a well-managed state government with sustainable finances — the kind of stability that benefits long-term business planning.
Tax policy directly impacts the bottom line. Alaska's overall tax burden is 4.93% of income, and crucially, there is no state income tax — a major advantage for business owners whose personal and business finances often overlap. The 1.82% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 49/100) with 4.7% unemployment shows healthy labor availability.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. Workforce quality may require investment in training — the education score of 17/100 suggests gaps in preparation. A typical home value of $398,663 is manageable for employees at typical small-business salary levels.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Chena Ridge | A | 76.5 | 64.9 | 93 | 86 | — | 5,881 |
| 2Gateway | A | 75.8 | 64.4 | 92 | 89 | — | 6,845 |
| 3Bethel | B+ | 67.8 | 60.8 | 70 | 72 | 89 | 6,312 |
| 4Sitka city and | A+ | 65.7 | 68.9 | 71 | 70 | 37 | 8,368 |
| 5Sterling | B+ | 63.0 | 58.8 | 76 | 59 | — | 6,323 |
| 6Juneau city and | A | 61.5 | 63.5 | 68 | 68 | 44 | 31,794 |
| 7North Lakes | C+ | 59.2 | 54.4 | 71 | 58 | — | 10,223 |
| 8Badger | C | 58.6 | 52.0 | 75 | 54 | — | 18,677 |
| 9South Lakes | C+ | 58.0 | 54.8 | 69 | 55 | — | 6,180 |
| 10Tanaina | C | 57.3 | 51.4 | 70 | 61 | — | 9,646 |
| 11Kalifornsky | C+ | 56.1 | 55.3 | 65 | 51 | — | 8,663 |
| 12Anchorage | C | 55.8 | 51.9 | 69 | 66 | 41 | 288,976 |
| 13College | C+ | 55.1 | 52.9 | 65 | 43 | — | 11,924 |
| 14Kenai | B | 53.8 | 57.6 | 54 | 45 | 50 | 7,641 |
| 15Knik-Fairview | D | 52.8 | 48.8 | 65 | 53 | — | 19,972 |
| 16Ketchikan | B | 50.1 | 58.0 | 57 | 44 | 17 | 8,078 |
| 17Fairbanks | C | 49.1 | 49.2 | 56 | 49 | 33 | 32,083 |
| 18Palmer | C+ | 48.5 | 53.5 | 48 | 32 | 51 | 6,268 |
| 19Wasilla | D | 45.2 | 47.6 | 37 | 28 | 64 | 9,720 |
| 20Meadow Lakes | D | 44.0 | 44.6 | 50 | 41 | — | 8,689 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Alaska for Other Lifestyles
Frequently Asked Questions
Is Alaska a good state for small business?
Alaska ranks #36 out of 50 for small business with a persona-weighted score of 46.8/100. Its strongest relevant category is Outdoor Access (100/100) and its weakest is Growth (13/100).
What is the best city for small business in Alaska?
Chena Ridge ranks #1 in Alaska for small business with a score of 76.5/100, followed by Gateway and Bethel.
What factors are most important for small business in Alaska?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.