Best Cities for Small Business in Rhode Island
Rhode Island for Small Business: The Full Picture
Rhode Island ranks #30 out of 50 for small business owners and entrepreneurs, with a mixed set of conditions for entrepreneurs. 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: 47/100) with 4.3% unemployment shows healthy labor availability.
Population is roughly stable, meaning market growth will depend on capturing share rather than riding demographic expansion. The education system (score: 86/100) produces a reasonably well-prepared workforce. Housing at $487,000 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 | Cumberland Hill | A+ | 68.0 | 65.8 | 89 | 67 | 50 | 8,638 |
| 2 | Wakefield-Peace Dale | A+ | 63.8 | 64.4 | 76 | 58 | 50 | 9,812 |
| 3 | Melville | A+ | 63.5 | 63.8 | 80 | 55 | 50 | 1,840 |
| 4 | Kingston | A+ | 62.9 | 64.9 | 70 | 46 | 50 | 6,953 |
| 5 | Greenville | A | 61.9 | 63.1 | 74 | 51 | 50 | 8,586 |
| 6 | Valley Falls | A | 60.7 | 60.9 | 72 | 51 | 50 | 12,370 |
| 7 | Cranston | A | 60.1 | 61.3 | 65 | 59 | 52 | 82,640 |
| 8 | Hope Valley | A | 59.9 | 60.7 | 72 | 53 | 50 | 2,147 |
| 9 | Warwick | A | 59.7 | 61.6 | 65 | 58 | 46 | 82,997 |
| 10 | Tiverton | A | 59.5 | 62.2 | 69 | 50 | 50 | 8,151 |
| 11 | Westerly | A | 58.6 | 62.3 | 65 | 46 | 50 | 18,528 |
| 12 | Pascoag | B+ | 58.1 | 59.8 | 62 | 54 | 50 | 4,081 |
| 13 | East Providence | B+ | 57.0 | 59.7 | 55 | 52 | 53 | 46,970 |
| 14 | Newport East | B+ | 55.1 | 60.1 | 52 | 47 | 50 | 11,262 |
| 15 | Narragansett Pier | B+ | 53.1 | 58.5 | 48 | 44 | 50 | 3,080 |
| 16 | Newport | B+ | 51.3 | 57.2 | 49 | 55 | 34 | 25,029 |
| 17 | Pawtucket | C+ | 49.7 | 52.7 | 43 | 42 | 50 | 75,312 |
| 18 | Providence | C+ | 47.0 | 52.5 | 32 | 41 | 48 | 190,791 |
| 19 | Woonsocket | C | 45.8 | 49.6 | 29 | 37 | 58 | 43,074 |
| 20 | Central Falls | C | 42.0 | 46.9 | 19 | 34 | 50 | 22,481 |