Best Cities for Small Business in Arkansas
Arkansas ranks #35 of 50 for small business, with a small business score of 48.5. Bentonville is its best city for small business at 69.7.
- Arkansas, all states
- #35 of 50
- Population
- 58,249
Arkansas for Small Business: The Full Picture
Arkansas ranks #35 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 56/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Arkansas's overall tax burden is 8.61% of income, with a 3.9% income tax rate that applies to both personal and pass-through business income. The 9.46% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 29/100) with 4.1% unemployment shows healthy labor availability.
Population growth of 0.6% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. Workforce quality may require investment in training — the education score of 49/100 suggests gaps in preparation. A typical home value of $227,264 helps attract and retain employees who can afford to live nearby.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Bentonville | A+ | 69.7 | 68.2 | 80 | 75 | 63 | 58,249 |
| 2Bella Vista | A | 67.6 | 66.0 | 72 | 59 | 79 | 31,697 |
| 3Rogers | B+ | 61.3 | 61.5 | 59 | 64 | 64 | 72,981 |
| 4Benton | B | 57.5 | 56.8 | 57 | 56 | 60 | 36,595 |
| 5Sherwood | C+ | 55.7 | 54.3 | 59 | 57 | 47 | 33,070 |
| 6Cabot | C+ | 54.5 | 54.8 | 52 | 57 | 50 | 26,960 |
| 7Springdale | C+ | 53.6 | 54.2 | 46 | 55 | 56 | 88,160 |
| 8Fayetteville | B | 53.0 | 57.4 | 29 | 50 | 71 | 99,319 |
| 9Conway | C | 50.7 | 51.7 | 36 | 50 | 60 | 67,642 |
| 10Paragould | C | 48.1 | 49.9 | 32 | 43 | 53 | 30,215 |
| 11Little Rock | D | 45.7 | 45.3 | 35 | 47 | 43 | 203,436 |
| 12Russellville | C | 45.0 | 49.7 | 24 | 39 | 43 | 29,162 |
| 13Fort Smith | D | 44.6 | 47.7 | 30 | 44 | 42 | 89,805 |
| 14Jonesboro | D | 43.9 | 47.9 | 22 | 43 | 48 | 80,137 |
| 15Hot Springs | D | 42.2 | 46.5 | 23 | 39 | 39 | 37,920 |
| 16North Little Rock | F | 41.9 | 42.4 | 26 | 41 | 43 | 64,538 |
| 17Jacksonville | F | 40.8 | 41.9 | 25 | 36 | 45 | 29,221 |
| 18Texarkana | F | 36.2 | 39.7 | 13 | 35 | 39 | 29,177 |
| 19Pine Bluff | F | 30.5 | 34.7 | 15 | 23 | 18 | 39,743 |
| 20West Memphis | F | 29.5 | 35.3 | 5 | 22 | 18 | 23,929 |
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: Arkansas for Other Lifestyles
Frequently Asked Questions
Is Arkansas a good state for small business?
Arkansas ranks #35 out of 50 for small business with a persona-weighted score of 48.5/100. Its strongest relevant category is Affordability (90/100) and its weakest is Outdoor Access (15/100).
What is the best city for small business in Arkansas?
Bentonville ranks #1 in Arkansas for small business with a score of 69.7/100, followed by Bella Vista and Rogers.
What factors are most important for small business in Arkansas?
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.