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Rankings are computed from publicly available federal and state government datasets, supplemented by a handful of published indexes (such as the Tax Foundation, Child Care Aware of America and Zillow Research). Figures are used as each source publishes them, including the FBI's own state crime estimates; nothing is synthetic or modeled by us, and every source is cited below.

  • Bureau of Labor Statistics, LAUS annual averages·
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  • S&P/Moody's via Ballotpedia·
  • Bureau of Labor Statistics, OES·
  • IRS Statistics of Income, State-to-State Migration·
  • U.S. Census Bureau, ACS State-to-State Migration Flows·
  • Zillow Research, Home Values, Rents & Market Metrics·
  • FBI Crime Data Explorer, city police agency reports·
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Home/MS/Best for Small Business
Mississippi · best for small business · #41 of 50 states

Best Cities for Small Business in Mississippi

Mississippi ranks #41 of 50 for small business, with a small business score of 41.3. Madison is its best city for small business at 69.4.

See all 50 states for small business →

#1 city in MS for small business
Madison69.4
Small Business score out of 100
Mississippi, all states
#41 of 50
Population
27,946
Open Madison →
Tax burden
9.06%
% of income
Fiscal health
44/100
GDP + debt + reserves
Pop. growth
+0.14%
Census estimates
Unemployment
3.8%
BLS LAUS
Economy score
30/100
Income + jobs + growth

What Small Business Should Know About Mississippi

Mississippi ranks #41 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 44/100 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. Mississippi's overall tax burden is 9.06% of income, with a 4.4% income tax rate that applies to both personal and pass-through business income. The 7.06% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 30/100) with 3.8% 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: 63/100) produces a reasonably well-prepared workforce. A typical home value of $197,606 helps attract and retain employees who can afford to live nearby.

All 20 Cities Ranked for Small Business

#  CityGradeSmall Business scoreOverallHousehold financesEconomyGrowthPopulation
1MadisonA+69.468.883805327,946
2BrandonA61.363.265675125,542
3Olive BranchB+61.260.376694347,019
4PearlB+55.758.945555827,737
5ClintonB54.557.855574127,195
6SouthavenB53.356.051574456,226
7TupeloC+51.355.541524737,791
8BiloxiC48.252.235484548,861
9RidgelandC+46.052.651273124,587
10GulfportD45.947.220446573,003
11OxfordB45.357.321553526,411
12Horn LakeC44.250.628434226,647
13HattiesburgC40.749.38424348,619
14PascagoulaD40.744.718423721,710
15ColumbusD40.646.519363723,348
16StarkvilleC39.152.03414525,721
17JacksonD37.945.473835146,631
18MeridianD35.644.31373634,137
19VicksburgF35.240.611352720,589
20GreenvilleF29.837.66291628,166

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

  • AlaskaSmall Business score 46.8#36
  • NevadaSmall Business score 46.4#37
  • PennsylvaniaSmall Business score 46.1#38
  • West VirginiaSmall Business score 46.1#39

Also See: Mississippi for Other Lifestyles

  • FamiliesFamilies score 61.9#31
  • RetireesRetirees score 44.6#48
  • Remote WorkersRemote Workers score 43.2#41
  • Young ProfessionalsYoung Professionals score 37.9#46
  • Outdoor EnthusiastsOutdoor Enthusiasts score 26.6#46

Frequently Asked Questions

Is Mississippi a good state for small business?

Mississippi ranks #41 out of 50 for small business with a persona-weighted score of 41.3/100. Its strongest relevant category is Affordability (92/100) and its weakest is Outdoor Access (15/100).

What is the best city for small business in Mississippi?

Madison ranks #1 in Mississippi for small business with a score of 69.4/100, followed by Brandon and Olive Branch.

What factors are most important for small business in Mississippi?

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.