Best Cities for Small Business in Rhode Island
Rhode Island ranks #40 of 50 for small business, with a small business score of 43.3. Cumberland Hill is its best city for small business at 74.8.
- Rhode Island, all states
- #40 of 50
- Population
- 8,648
What Small Business Should Know About Rhode Island
Rhode Island ranks #40 out of 50 for small business owners and entrepreneurs, presenting some challenges for business formation and growth. The state's fiscal health score of 43/100 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. Rhode Island's overall tax burden is 10.08% of income, with a 5.99% income tax rate that applies to both personal and pass-through business income. The 7% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 41/100) with 4.5% unemployment shows healthy labor availability.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. Workforce quality may require investment in training — the education score of 54/100 suggests gaps in preparation. A typical home value of $511,233 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 |
|---|---|---|---|---|---|---|---|
| 1Cumberland Hill | A+ | 74.8 | 67.3 | 88 | 83 | — | 8,648 |
| 2Kingston | A | 68.5 | 64.1 | 82 | 63 | — | 7,332 |
| 3Westerly | A+ | 67.9 | 70.6 | 71 | 63 | — | 18,411 |
| 4Pascoag | B+ | 64.6 | 59.7 | 72 | 75 | — | 4,410 |
| 5Tiverton | A | 64.5 | 64.0 | 75 | 64 | — | 8,091 |
| 6Warwick | A | 62.2 | 66.5 | 65 | 58 | 50 | 83,175 |
| 7Wakefield-Peace Dale | B+ | 62.2 | 62.5 | 69 | 62 | — | 9,302 |
| 8Greenville | B+ | 60.8 | 59.3 | 74 | 54 | — | 8,296 |
| 9Valley Falls | B | 60.7 | 57.9 | 73 | 50 | — | 12,657 |
| 10Melville | B | 60.0 | 58.2 | 79 | 59 | — | 1,631 |
| 11Cranston | A | 58.8 | 64.2 | 61 | 56 | 43 | 83,250 |
| 12Hope Valley | B | 58.5 | 57.5 | 68 | 58 | — | 2,297 |
| 13East Providence | A | 57.1 | 63.0 | 55 | 50 | 47 | 47,281 |
| 14Newport East | B | 53.5 | 58.7 | 57 | 47 | — | 11,069 |
| 15Newport | B+ | 52.7 | 62.7 | 47 | 55 | 33 | 24,874 |
| 16Pawtucket | B | 51.0 | 57.3 | 45 | 43 | 40 | 75,893 |
| 17Narragansett Pier | C+ | 48.0 | 53.6 | 51 | 41 | — | 3,167 |
| 18Providence | B | 47.7 | 56.4 | 32 | 41 | 41 | 191,767 |
| 19Woonsocket | C | 43.9 | 51.2 | 32 | 37 | 39 | 43,521 |
| 20Central Falls | C | 42.1 | 51.2 | 16 | 33 | 42 | 22,701 |
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: Rhode Island for Other Lifestyles
Frequently Asked Questions
Is Rhode Island a good state for small business?
Rhode Island ranks #40 out of 50 for small business with a persona-weighted score of 43.3/100. Its strongest relevant category is Safety (91/100) and its weakest is Growth (28/100).
What is the best city for small business in Rhode Island?
Cumberland Hill ranks #1 in Rhode Island for small business with a score of 74.8/100, followed by Kingston and Westerly.
What factors are most important for small business in Rhode Island?
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.