Best Cities for Small Business in New Hampshire
New Hampshire ranks #4 of 50 for small business, with a small business score of 78.3. Hanover is its best city for small business at 83.6.
- New Hampshire, all states
- #4 of 50
- Population
- 8,479
Why New Hampshire Works for Small Business
New Hampshire ranks #4 out of 50 for small business owners and entrepreneurs — 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 — 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: 74/100) with 3.2% unemployment indicates tight labor markets — good for consumer spending but potentially challenging for hiring.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 78/100) produces a reasonably well-prepared workforce. A typical home value of $516,306 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 |
|---|---|---|---|---|---|---|---|
| 1Hanover | A+ | 83.6 | 80.8 | 91 | 87 | — | 8,479 |
| 2Londonderry | A | 72.6 | 66.7 | 87 | 77 | — | 12,225 |
| 3Durham | A+ | 70.6 | 71.2 | 66 | 70 | — | 10,681 |
| 4Lebanon | A+ | 70.2 | 72.2 | 70 | 75 | 60 | 14,999 |
| 5Portsmouth | A+ | 66.9 | 68.9 | 74 | 72 | 51 | 22,545 |
| 6Dover | A+ | 66.3 | 67.6 | 66 | 71 | 68 | 33,364 |
| 7Hampton | A | 66.1 | 63.5 | 75 | 63 | — | 10,101 |
| 8Exeter | A | 66.0 | 65.9 | 67 | 64 | — | 9,964 |
| 9Derry | B+ | 63.1 | 60.4 | 72 | 62 | — | 21,339 |
| 10Milford | B+ | 61.5 | 61.1 | 64 | 60 | — | 8,956 |
| 11Concord | A | 60.9 | 64.4 | 61 | 64 | 46 | 44,375 |
| 12Nashua | A | 60.7 | 63.2 | 68 | 63 | 48 | 91,294 |
| 13Keene | A | 58.6 | 63.7 | 56 | 61 | 43 | 22,939 |
| 14Rochester | B+ | 57.8 | 60.2 | 60 | 62 | 49 | 33,144 |
| 15Somersworth | B+ | 55.6 | 60.8 | 52 | 60 | 42 | 12,111 |
| 16Franklin | B | 55.0 | 57.6 | 59 | 58 | 48 | 8,799 |
| 17Manchester | B | 54.9 | 57.3 | 55 | 59 | 48 | 115,643 |
| 18Laconia | B+ | 54.4 | 60.0 | 49 | 57 | 43 | 17,085 |
| 19Claremont | B | 52.1 | 57.2 | 41 | 53 | 43 | 13,078 |
| 20Berlin | C+ | 47.2 | 53.3 | 32 | 41 | 41 | 9,383 |
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: New Hampshire for Other Lifestyles
Frequently Asked Questions
Is New Hampshire a good state for small business?
New Hampshire ranks #4 out of 50 for small business with a persona-weighted score of 78.3/100. Its strongest relevant category is Safety (94/100) and its weakest is Outdoor Access (43/100).
What is the best city for small business in New Hampshire?
Hanover ranks #1 in New Hampshire for small business with a score of 83.6/100, followed by Londonderry and Durham.
What factors are most important for small business in New Hampshire?
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.