Best Cities for Small Business in Nebraska
Why Nebraska Works for Small Business
Nebraska ranks #5 out of 50 for small business owners and entrepreneurs β one of the most business-friendly environments in the country. The state's fiscal health score of 71/100 signals a well-managed state government with sustainable finances β the kind of stability that benefits long-term business planning.
Tax policy directly impacts the bottom line. Nebraska's overall tax burden is 8.78% of income, with a 5.2% income tax rate that applies to both personal and pass-through business income. The 6.98% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 60/100) with 2.8% unemployment indicates tight labor markets β good for consumer spending but potentially challenging for hiring.
Population growth of 0.7% is a tailwind β a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 84/100) produces a reasonably well-prepared workforce. Housing at $289,000 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 | Gretna | B+ | 62.9 | 59.1 | 86 | 61 | 48 | 9,117 |
| 2 | Papillion | A | 61.9 | 61.1 | 80 | 57 | 44 | 24,063 |
| 3 | Bellevue | B+ | 59.6 | 58.6 | 64 | 63 | 54 | 64,355 |
| 4 | Chalco | B+ | 57.5 | 57.4 | 65 | 45 | 50 | 10,625 |
| 5 | Lexington | B+ | 56.2 | 57.6 | 37 | 54 | 68 | 10,693 |
| 6 | Fremont | B+ | 56.1 | 57.0 | 52 | 56 | 58 | 27,321 |
| 7 | La Vista | B+ | 55.4 | 57.6 | 64 | 44 | 43 | 16,594 |
| 8 | South Sioux City | B | 54.8 | 55.9 | 50 | 53 | 43 | 13,871 |
| 9 | Lincoln | B | 54.7 | 55.2 | 47 | 58 | 59 | 294,750 |
| 10 | Kearney | B | 54.4 | 55.4 | 45 | 61 | 59 | 34,024 |
| 11 | Omaha | B | 52.8 | 54.0 | 48 | 56 | 49 | 483,362 |
| 12 | Norfolk | B+ | 52.7 | 56.7 | 44 | 56 | 44 | 25,962 |
| 13 | Hastings | B | 52.6 | 53.8 | 40 | 55 | 57 | 25,005 |
| 14 | Columbus | B | 52.1 | 54.3 | 52 | 39 | 49 | 24,188 |
| 15 | Grand Island | C+ | 50.7 | 52.0 | 44 | 51 | 49 | 52,761 |
| 16 | Gering | B | 48.5 | 53.2 | 47 | 40 | 38 | 8,567 |
| 17 | York | C+ | 47.4 | 51.9 | 48 | 37 | 34 | 8,114 |
| 18 | North Platte | C | 43.3 | 48.6 | 36 | 35 | 34 | 23,030 |
| 19 | Beatrice | C | 41.6 | 48.8 | 27 | 34 | 38 | 12,233 |
| 20 | Scottsbluff | C | 41.0 | 45.9 | 32 | 33 | 35 | 14,406 |