Best Cities for Small Business in Indiana
Indiana ranks #18 of 50 for small business, with a small business score of 63.0. Westfield is its best city for small business at 78.8.
- Indiana, all states
- #18 of 50
- Population
- 54,677
Indiana for Small Business: The Full Picture
Indiana ranks #18 out of 50 for small business owners and entrepreneurs, offering a favorable climate for new ventures. The state's fiscal health score of 65/100 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. Indiana's overall tax burden is 9.09% of income, with a 5.02% income tax rate that applies to both personal and pass-through business income. The 7% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 43/100) with 3.7% unemployment shows healthy labor availability.
Population growth of 0.56% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 74/100) produces a reasonably well-prepared workforce. A typical home value of $260,095 helps attract and retain employees who can afford to live nearby.
All 21 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Westfield | A+ | 78.8 | 72.7 | 87 | 81 | 95 | 54,677 |
| 2Carmel | A+ | 76.7 | 73.1 | 95 | 88 | 64 | 101,651 |
| 3Fishers | A+ | 72.4 | 70.7 | 90 | 84 | 53 | 102,337 |
| 4Noblesville | A | 66.5 | 66.6 | 76 | 71 | 56 | 73,362 |
| 5Greenwood | B+ | 60.8 | 60.4 | 63 | 62 | 59 | 66,029 |
| 6Jeffersonville | B | 58.0 | 57.2 | 50 | 53 | 64 | 51,043 |
| 7Columbus | B+ | 57.0 | 59.6 | 53 | 56 | 52 | 51,824 |
| 8Fort Wayne | B | 52.2 | 56.7 | 37 | 49 | 51 | 268,589 |
| 9Indianapolis city | C | 49.2 | 50.9 | 40 | 51 | 44 | 885,860 |
| 10Lafayette | B | 48.9 | 57.7 | 31 | 45 | 44 | 71,159 |
| 11Mishawaka | C+ | 47.6 | 53.7 | 34 | 43 | 47 | 51,021 |
| 12Elkhart | C+ | 46.6 | 52.8 | 29 | 40 | 45 | 53,733 |
| 13Bloomington | B | 45.7 | 57.9 | 7 | 44 | 52 | 80,049 |
| 14South Bend | C | 44.9 | 52.2 | 26 | 42 | 38 | 103,085 |
| 15Evansville | D | 44.1 | 45.1 | 30 | 45 | 44 | 116,116 |
| 16Anderson | C | 43.9 | 50.4 | 22 | 39 | 46 | 55,367 |
| 17Kokomo | D | 41.5 | 48.8 | 33 | 29 | 32 | 59,122 |
| 18Terre Haute | D | 41.2 | 47.6 | 13 | 37 | 44 | 58,427 |
| 19Hammond | D | 40.4 | 44.6 | 29 | 38 | 33 | 76,768 |
| 20Muncie | C | 40.2 | 49.8 | 6 | 37 | 42 | 64,751 |
| 21Gary | F | 24.6 | 31.1 | 2 | 10 | 21 | 68,113 |
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: Indiana for Other Lifestyles
Frequently Asked Questions
Is Indiana a good state for small business?
Indiana ranks #18 out of 50 for small business with a persona-weighted score of 63.0/100. Its strongest relevant category is Safety (80/100) and its weakest is Outdoor Access (10/100).
What is the best city for small business in Indiana?
Westfield ranks #1 in Indiana for small business with a score of 78.8/100, followed by Carmel and Fishers.
What factors are most important for small business in Indiana?
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.