Best Cities for Small Business in North Dakota
North Dakota ranks #3 of 50 for small business, with a small business score of 79.1. Horace is its best city for small business at 79.6.
- North Dakota, all states
- #3 of 50
- Population
- 4,588
Why North Dakota Works for Small Business
North Dakota ranks #3 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 70/100 signals a well-managed state government with sustainable finances — the kind of stability that benefits long-term business planning.
Tax policy directly impacts the bottom line. North Dakota's overall tax burden is 6.61% of income, with a 2.5% income tax rate that applies to both personal and pass-through business income. The 7.09% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 64/100) with 2.6% unemployment indicates tight labor markets — good for consumer spending but potentially challenging for hiring.
Population growth of 0.75% 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 $292,293 helps attract and retain employees who can afford to live nearby.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Horace | A+ | 79.6 | 69.0 | 93 | 90 | 100 | 4,588 |
| 2West Fargo | A+ | 65.9 | 69.3 | 64 | 70 | 59 | 40,094 |
| 3Watford City | B+ | 62.6 | 61.3 | 70 | 59 | 64 | 6,039 |
| 4Williston | B+ | 60.4 | 60.4 | 60 | 62 | 69 | 28,056 |
| 5Bismarck | B+ | 60.0 | 61.8 | 57 | 64 | 56 | 75,556 |
| 6Dickinson | B+ | 57.9 | 62.7 | 51 | 64 | 55 | 25,357 |
| 7Grand Forks | A | 57.2 | 63.9 | 39 | 58 | 58 | 59,042 |
| 8Fargo | B+ | 57.2 | 62.0 | 46 | 57 | 54 | 131,627 |
| 9Minot | B+ | 56.1 | 62.1 | 52 | 60 | 47 | 47,791 |
| 10Beulah | B+ | 53.5 | 60.1 | 53 | 36 | 43 | 3,040 |
| 11Lincoln | B | 53.4 | 58.0 | 68 | 46 | 33 | 4,381 |
| 12Minot AFB | C+ | 49.5 | 53.7 | 62 | 24 | — | 4,878 |
| 13Mandan | C+ | 49.1 | 53.2 | 53 | 32 | 41 | 24,522 |
| 14Casselton | C | 47.5 | 52.1 | 59 | 33 | 34 | 2,953 |
| 15Grafton | C+ | 43.5 | 54.9 | 41 | 24 | 27 | 4,102 |
| 16Wahpeton | C+ | 43.2 | 54.4 | 39 | 24 | 30 | 8,010 |
| 17Jamestown | C+ | 42.0 | 53.2 | 38 | 19 | 26 | 15,787 |
| 18Valley City | C | 40.5 | 52.2 | 36 | 22 | 16 | 6,541 |
| 19Devils Lake | C | 35.8 | 50.0 | 19 | 7 | 30 | 7,308 |
| 20New Town | F | 31.6 | 42.0 | 19 | 15 | 19 | 2,721 |
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: North Dakota for Other Lifestyles
Frequently Asked Questions
Is North Dakota a good state for small business?
North Dakota ranks #3 out of 50 for small business with a persona-weighted score of 79.1/100. Its strongest relevant category is Affordability (84/100) and its weakest is Outdoor Access (39/100).
What is the best city for small business in North Dakota?
Horace ranks #1 in North Dakota for small business with a score of 79.6/100, followed by West Fargo and Watford City.
What factors are most important for small business in North Dakota?
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.