Illinois · best for small business · #48 of 50 states

Best Cities for Small Business in Illinois

Illinois ranks #48 of 50 for small business, with a small business score of 30.3. Naperville is its best city for small business at 73.9.

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#1 city in IL for small business

Naperville73.9

Small Business score out of 100

Illinois, all states: #48 of 50
Population: 150,692

Open Naperville →

Tax burden

10.22%

% of income

Fiscal health

22/100

GDP + debt + reserves

Pop. growth

+0.13%

Census estimates

Unemployment

4.6%

BLS LAUS

Economy score

40/100

Income + jobs + growth

What Small Business Should Know About Illinois

Illinois ranks #48 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 22/100 raises questions about the state's long-term fiscal trajectory, which can affect tax policy and regulatory stability.

Tax policy directly impacts the bottom line. Illinois's overall tax burden is 10.22% of income, with a 4.95% income tax rate that applies to both personal and pass-through business income. The 8.96% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 40/100) with 4.6% unemployment shows healthy labor availability.

Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 66/100) produces a reasonably well-prepared workforce. A typical home value of $297,573 helps attract and retain employees who can afford to live nearby.

All 29 Cities Ranked for Small Business

# City	Grade	Small Business score	Overall	Household finances	Economy	Growth	Population
1Naperville	A+	73.9	73.2	97	87	46	150,692
2Wheaton	A+	70.4	72.0	82	74	55	53,557
3Arlington Heights	A+	68.7	70.8	80	72	50	76,005
4Oak Park	A+	66.0	69.2	75	67	37	53,292
5Mount Prospect	A+	64.6	69.2	72	67	41	55,472
6Des Plaines	A+	64.5	69.4	72	62	39	59,156
7Skokie	A+	64.5	68.7	64	60	51	66,219
8Hoffman Estates	A+	64.0	68.0	74	67	41	51,175
9Tinley Park	A	63.9	65.7	77	65	46	54,842
10Schaumburg	A	63.1	67.0	72	63	43	76,868
11Evanston	A+	63.0	69.6	60	60	39	76,340
12Bolingbrook	A	62.3	63.8	70	65	40	74,096
13Palatine	A	61.6	66.5	68	63	40	66,293
14Orland Park	A	60.9	65.3	70	63	40	57,916
15Aurora	B+	57.6	60.4	64	57	42	179,898
16Bloomington	B+	57.1	62.2	54	54	40	78,907
17Oak Lawn	B+	55.8	61.7	59	51	36	56,861
18Elgin	B+	55.3	59.4	61	49	39	114,934
19Joliet	B	54.6	56.6	60	52	38	150,445
20Berwyn	B+	54.3	60.5	54	48	35	55,595
21Chicago	B	53.3	58.7	43	49	40	2,711,226
22Cicero	B	51.2	58.0	44	46	35	82,797
23Normal	B	49.1	57.7	29	48	42	53,569
24Waukegan	C+	48.6	55.0	43	41	32	89,076
25Springfield	C	48.6	51.1	38	44	38	113,330
26Champaign	B+	48.5	59.6	17	44	47	89,996
27Peoria	D	41.8	46.5	27	37	36	112,169
28Rockford	F	38.9	42.5	25	32	36	147,521
29Decatur	F	36.3	41.9	27	28	24	69,815

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: Illinois for Other Lifestyles

Frequently Asked Questions

Is Illinois a good state for small business?

Illinois ranks #48 out of 50 for small business with a persona-weighted score of 30.3/100. Its strongest relevant category is Safety (73/100) and its weakest is Outdoor Access (6/100).

What is the best city for small business in Illinois?

Naperville ranks #1 in Illinois for small business with a score of 73.9/100, followed by Wheaton and Arlington Heights.

What factors are most important for small business in Illinois?

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.