Best Cities for Small Business in Minnesota
Minnesota ranks #17 of 50 for small business, with a small business score of 63.2. Lakeville is its best city for small business at 74.3.
- Minnesota, all states
- #17 of 50
- Population
- 74,354
Minnesota for Small Business: The Full Picture
Minnesota ranks #17 out of 50 for small business owners and entrepreneurs, offering a favorable climate for new ventures. The state's fiscal health score of 59/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Minnesota's overall tax burden is 9.72% of income, with a 9.85% income tax rate that applies to both personal and pass-through business income. The 8.14% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 53/100) with 3.9% unemployment shows healthy labor availability.
Population growth of 0.57% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 65/100) produces a reasonably well-prepared workforce. A typical home value of $350,752 is manageable for employees at typical small-business salary levels.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Lakeville | A+ | 74.3 | 70.9 | 95 | 86 | 59 | 74,354 |
| 2Edina | A+ | 71.4 | 72.2 | 88 | 81 | 56 | 53,262 |
| 3Minnetonka | A+ | 71.2 | 71.8 | 81 | 76 | 65 | 53,064 |
| 4Maple Grove | A+ | 70.8 | 69.2 | 91 | 82 | 58 | 71,173 |
| 5Plymouth | A+ | 70.6 | 71.5 | 92 | 84 | 46 | 79,220 |
| 6Eden Prairie | A+ | 70.1 | 71.7 | 89 | 81 | 45 | 63,051 |
| 7Woodbury | A+ | 69.9 | 68.4 | 85 | 80 | 61 | 78,305 |
| 8Blaine | A | 64.9 | 63.8 | 73 | 68 | 59 | 72,488 |
| 9St. Louis Park | A+ | 63.8 | 68.0 | 72 | 69 | 43 | 49,594 |
| 10Eagan | A | 63.6 | 65.7 | 77 | 71 | 40 | 68,000 |
| 11Apple Valley | A | 61.5 | 64.0 | 72 | 65 | 41 | 55,679 |
| 12Rochester | B+ | 61.3 | 62.4 | 64 | 64 | 53 | 122,330 |
| 13Bloomington | B+ | 59.8 | 62.8 | 64 | 63 | 50 | 88,665 |
| 14Brooklyn Park | B+ | 58.3 | 61.6 | 62 | 59 | 46 | 83,876 |
| 15Coon Rapids | B+ | 57.9 | 59.7 | 64 | 59 | 45 | 63,468 |
| 16Burnsville | B+ | 57.8 | 61.7 | 58 | 60 | 46 | 64,463 |
| 17St. Paul | B | 52.4 | 57.9 | 43 | 54 | 42 | 307,284 |
| 18Duluth | B | 52.1 | 58.6 | 39 | 53 | 45 | 87,093 |
| 19Minneapolis | C+ | 51.5 | 54.0 | 46 | 57 | 42 | 427,246 |
| 20St. Cloud | C | 45.5 | 51.3 | 30 | 44 | 47 | 70,629 |
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: Minnesota for Other Lifestyles
Frequently Asked Questions
Is Minnesota a good state for small business?
Minnesota ranks #17 out of 50 for small business with a persona-weighted score of 63.2/100. Its strongest relevant category is Safety (77/100) and its weakest is Outdoor Access (31/100).
What is the best city for small business in Minnesota?
Lakeville ranks #1 in Minnesota for small business with a score of 74.3/100, followed by Edina and Minnetonka.
What factors are most important for small business in Minnesota?
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.