Best Cities for Small Business in Louisiana
What Small Business Should Know About Louisiana
Louisiana ranks #50 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 43/100 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. Louisiana's overall tax burden is 8.94% of income, with a 3% income tax rate that applies to both personal and pass-through business income. The 10.11% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 21/100) with 4.3% 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 16/100 suggests gaps in preparation. Housing at $249,000 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 | Prairieville | C+ | 59.8 | 51.2 | 83 | 60 | 50 | 35,010 |
| 2 | Central | D | 51.7 | 44.3 | 69 | 62 | 51 | 29,603 |
| 3 | Kenner | C | 49.6 | 46.7 | 43 | 51 | 54 | 63,339 |
| 4 | Metairie | C | 49.5 | 45.6 | 45 | 49 | 56 | 136,597 |
| 5 | Laplace | D | 46.9 | 42.3 | 47 | 39 | 50 | 28,480 |
| 6 | Slidell | C | 45.8 | 46.0 | 41 | 44 | 37 | 28,664 |
| 7 | Lake Charles | D | 44.8 | 44.2 | 22 | 40 | 54 | 79,647 |
| 8 | Lafayette | D | 43.3 | 41.8 | 32 | 48 | 46 | 121,452 |
| 9 | Houma | D | 43.1 | 42.0 | 32 | 44 | 38 | 32,760 |
| 10 | Terrytown | F | 41.0 | 38.2 | 31 | 35 | 50 | 25,844 |
| 11 | Bossier City | D | 40.8 | 38.9 | 27 | 42 | 44 | 62,832 |
| 12 | Chalmette | D | 39.7 | 39.7 | 20 | 35 | 50 | 22,447 |
| 13 | Marrero | F | 36.9 | 35.3 | 19 | 30 | 50 | 31,866 |
| 14 | New Orleans | F | 36.5 | 37.0 | 23 | 39 | 31 | 364,136 |
| 15 | Shreveport | F | 34.4 | 34.8 | 18 | 37 | 30 | 177,225 |
| 16 | New Iberia | F | 33.5 | 35.2 | 13 | 35 | 29 | 27,926 |
| 17 | Baton Rouge | F | 33.3 | 33.6 | 12 | 34 | 40 | 219,563 |
| 18 | Alexandria | F | 32.8 | 31.9 | 12 | 39 | 30 | 44,566 |
| 19 | Ruston | F | 32.3 | 37.9 | 0 | 25 | 34 | 22,224 |
| 20 | Monroe | F | 29.2 | 30.0 | 1 | 24 | 33 | 47,241 |