Best Cities for Small Business in New Hampshire
Why New Hampshire Works for Small Business
New Hampshire ranks #3 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 63/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. New Hampshire's overall tax burden is 5.94% of income, and crucially, there is no state income tax β a major advantage for business owners whose personal and business finances often overlap. The absence of a sales tax simplifies retail operations. The economic environment (score: 85/100) with 2.8% unemployment indicates tight labor markets β good for consumer spending but potentially challenging for hiring.
Population growth of 0.6% is a tailwind β a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 92/100) produces a reasonably well-prepared workforce. Housing at $483,000 median is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # | City | Grade | Small Business Score | Overall | Fiscal Health | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|---|
| 1 | Hanover | A+ | 71.1 | 73.1 | 81 | 69 | 50 | 8,520 |
| 2 | Portsmouth | A+ | 68.9 | 68.6 | 76 | 76 | 55 | 22,332 |
| 3 | Lebanon | A+ | 66.3 | 68.9 | 65 | 74 | 53 | 14,759 |
| 4 | Londonderry | A+ | 65.8 | 65.6 | 84 | 59 | 50 | 12,307 |
| 5 | Dover | A+ | 65.3 | 65.7 | 66 | 72 | 60 | 33,070 |
| 6 | Durham | A+ | 64.5 | 67.4 | 61 | 58 | 50 | 10,577 |
| 7 | Nashua | A | 63.2 | 63.1 | 70 | 68 | 52 | 90,997 |
| 8 | Hampton | A+ | 63.1 | 64.3 | 75 | 52 | 50 | 9,960 |
| 9 | Concord | A+ | 62.2 | 64.0 | 61 | 67 | 50 | 44,219 |
| 10 | Exeter | A+ | 59.9 | 63.9 | 64 | 46 | 50 | 10,138 |
| 11 | Derry | A | 59.4 | 61.0 | 70 | 48 | 50 | 21,668 |
| 12 | Keene | A | 59.1 | 61.7 | 56 | 64 | 50 | 22,923 |
| 13 | Milford | A | 58.9 | 62.2 | 64 | 45 | 50 | 8,857 |
| 14 | Somersworth | A | 58.2 | 60.2 | 54 | 65 | 50 | 12,060 |
| 15 | Rochester | B+ | 58.1 | 59.1 | 59 | 65 | 49 | 32,866 |
| 16 | Laconia | B+ | 56.4 | 58.6 | 48 | 59 | 57 | 16,982 |
| 17 | Franklin | B+ | 56.3 | 57.9 | 59 | 61 | 50 | 8,757 |
| 18 | Manchester | B+ | 56.1 | 56.6 | 55 | 61 | 51 | 115,473 |
| 19 | Claremont | B | 50.4 | 55.8 | 36 | 53 | 45 | 13,054 |
| 20 | Berlin | B | 46.6 | 53.8 | 28 | 46 | 39 | 9,473 |