Best Cities for Small Business in Kansas
Kansas for Small Business: The Full Picture
Kansas ranks #24 out of 50 for small business owners and entrepreneurs, with a mixed set of conditions for entrepreneurs. The state's fiscal health score of 52/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Kansas's overall tax burden is 9.33% of income, with a 5.58% income tax rate that applies to both personal and pass-through business income. The 8.69% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 49/100) with 3.3% unemployment indicates tight labor markets β good for consumer spending but potentially challenging for hiring.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 69/100) produces a reasonably well-prepared workforce. Housing at $279,000 median helps attract and retain employees who can afford to live nearby.
All 20 Cities Ranked for Small Business
| # | City | Grade | Small Business Score | Overall | Fiscal Health | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|---|
| 1 | Leawood | A+ | 72.7 | 67.5 | 100 | 90 | 47 | 33,844 |
| 2 | Olathe | A+ | 66.4 | 64.0 | 76 | 71 | 57 | 147,466 |
| 3 | Lenexa | A | 65.5 | 63.2 | 74 | 69 | 62 | 57,986 |
| 4 | Gardner | A | 63.4 | 61.7 | 67 | 64 | 63 | 24,020 |
| 5 | Overland Park | A | 63.1 | 62.3 | 74 | 66 | 52 | 197,062 |
| 6 | Shawnee | A | 62.8 | 61.3 | 74 | 68 | 51 | 69,417 |
| 7 | Derby | B+ | 58.5 | 58.6 | 65 | 58 | 54 | 25,801 |
| 8 | Prairie Village | B+ | 58.1 | 59.5 | 76 | 57 | 38 | 22,937 |
| 9 | Garden City | C+ | 54.4 | 52.6 | 51 | 59 | 54 | 27,781 |
| 10 | Dodge City | C+ | 50.6 | 52.2 | 40 | 57 | 48 | 27,652 |
| 11 | Salina | C+ | 50.4 | 51.3 | 42 | 50 | 45 | 46,432 |
| 12 | Lawrence | B | 50.0 | 56.1 | 35 | 52 | 50 | 96,209 |
| 13 | Kansas City | B | 49.6 | 53.2 | 34 | 45 | 55 | 149,918 |
| 14 | Leavenworth | C | 49.4 | 48.5 | 49 | 50 | 47 | 37,176 |
| 15 | Emporia | C+ | 47.4 | 50.9 | 29 | 47 | 50 | 24,098 |
| 16 | Hutchinson | C | 46.7 | 48.6 | 38 | 47 | 41 | 39,837 |
| 17 | Junction City | C | 46.6 | 48.7 | 33 | 47 | 47 | 22,431 |
| 18 | Manhattan | B | 46.5 | 53.1 | 17 | 52 | 58 | 53,951 |
| 19 | Wichita | D | 45.9 | 44.2 | 38 | 47 | 49 | 396,123 |
| 20 | Topeka | D | 44.3 | 44.7 | 34 | 44 | 43 | 125,480 |