Best Cities for Small Business in Maryland
Maryland ranks #31 of 50 for small business, with a small business score of 52.0. Bethesda is its best city for small business at 82.4.
- Maryland, all states
- #31 of 50
- Population
- 69,397
Maryland for Small Business: The Full Picture
Maryland ranks #31 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 55/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Maryland's overall tax burden is 10.04% of income, with a 8.95% income tax rate that applies to both personal and pass-through business income. The 6% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 65/100) with 4% 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: 56/100) produces a reasonably well-prepared workforce. A typical home value of $428,308 is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Bethesda | A+ | 82.4 | 76.7 | 98 | 100 | — | 69,397 |
| 2Ellicott City | A+ | 82.1 | 74.3 | 99 | 100 | — | 75,257 |
| 3Potomac | A+ | 79.7 | 72.9 | 98 | 100 | — | 45,902 |
| 4Columbia | A+ | 75.7 | 71.5 | 84 | 84 | — | 104,338 |
| 5North Bethesda | A+ | 75.2 | 72.1 | 87 | 82 | — | 49,677 |
| 6Severn | A | 74.0 | 66.0 | 88 | 87 | — | 58,402 |
| 7Bel Air South | A | 72.7 | 64.9 | 87 | 77 | — | 58,137 |
| 8Rockville | A+ | 69.5 | 71.4 | 82 | 77 | 54 | 67,671 |
| 9Bowie | A | 69.2 | 64.8 | 95 | 82 | 47 | 57,926 |
| 10Germantown | A+ | 68.5 | 67.5 | 75 | 72 | — | 90,719 |
| 11Frederick | A | 64.9 | 63.5 | 66 | 64 | 72 | 83,395 |
| 12Aspen Hill | B+ | 64.0 | 62.8 | 71 | 67 | — | 53,279 |
| 13Waldorf | B | 64.0 | 56.7 | 77 | 71 | — | 82,943 |
| 14Gaithersburg | A+ | 63.4 | 68.2 | 73 | 71 | 36 | 69,825 |
| 15Wheaton | A | 62.5 | 63.0 | 65 | 67 | — | 52,926 |
| 16Silver Spring | A | 61.3 | 63.2 | 64 | 56 | — | 81,462 |
| 17Towson | B+ | 60.9 | 61.8 | 62 | 58 | — | 58,679 |
| 18Glen Burnie | B | 56.5 | 56.6 | 62 | 46 | — | 72,590 |
| 19Baltimore | D | 44.3 | 48.0 | 31 | 40 | 37 | 573,243 |
| 20Dundalk | D | 40.1 | 45.5 | 36 | 26 | — | 65,969 |
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: Maryland for Other Lifestyles
Frequently Asked Questions
Is Maryland a good state for small business?
Maryland ranks #31 out of 50 for small business with a persona-weighted score of 52.0/100. Its strongest relevant category is Economy (65/100) and its weakest is Outdoor Access (12/100).
What is the best city for small business in Maryland?
Bethesda ranks #1 in Maryland for small business with a score of 82.4/100, followed by Ellicott City and Potomac.
What factors are most important for small business in Maryland?
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.