Best Cities for Small Business in Vermont
Vermont ranks #22 of 50 for small business, with a small business score of 59.3. Shelburne is its best city for small business at 71.4.
- Vermont, all states
- #22 of 50
- Population
- 6,499
Vermont for Small Business: The Full Picture
Vermont ranks #22 out of 50 for small business owners and entrepreneurs, with a mixed set of conditions for entrepreneurs. The state's fiscal health score of 51/100 is adequate, though fiscal conditions aren't a standout advantage.
Tax policy directly impacts the bottom line. Vermont's overall tax burden is 11.53% of income, with a 8.75% income tax rate that applies to both personal and pass-through business income. The 6.39% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 67/100) with 2.7% unemployment indicates tight labor markets — good for consumer spending but potentially challenging for hiring.
Declining population (-0.29%) is a headwind for customer-dependent businesses, though it can reduce competition. Workforce quality may require investment in training — the education score of 52/100 suggests gaps in preparation. A typical home value of $399,053 is manageable for employees at typical small-business salary levels.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Shelburne | A+ | 71.4 | 76.0 | 70 | 78 | — | 6,499 |
| 2Middlebury | A+ | 67.6 | 76.4 | 50 | 66 | — | 7,220 |
| 3Essex Junction | A+ | 67.2 | 70.9 | 62 | 70 | 68 | 10,803 |
| 4South Burlington | A+ | 65.7 | 69.6 | 73 | 77 | 39 | 20,756 |
| 5Montpelier | A+ | 64.6 | 69.9 | 64 | 66 | 39 | 8,014 |
| 6Milton | A+ | 63.4 | 67.5 | 55 | 63 | — | 3,555 |
| 7Winooski | A+ | 59.9 | 69.2 | 49 | 65 | 40 | 8,293 |
| 8White River Junction | A | 59.4 | 65.5 | 52 | 37 | — | 3,364 |
| 9Burlington | A | 55.5 | 64.4 | 33 | 61 | 44 | 44,675 |
| 10Bennington | B | 51.2 | 56.7 | 43 | 47 | — | 9,245 |
| 11Wilder | C+ | 51.2 | 55.6 | 56 | 35 | — | 3,087 |
| 12Springfield | B+ | 51.0 | 60.2 | 26 | 48 | — | 4,237 |
| 13Rutland | B | 50.6 | 57.9 | 37 | 52 | 34 | 15,712 |
| 14Brattleboro | B+ | 50.4 | 62.6 | 24 | 49 | — | 7,657 |
| 15Northfield | B+ | 50.0 | 59.9 | 35 | 55 | — | 3,766 |
| 16St. Johnsbury | B+ | 49.5 | 61.3 | 27 | 49 | — | 5,859 |
| 17St. Albans | C+ | 48.3 | 53.1 | 29 | 51 | 37 | 6,954 |
| 18Barre | C+ | 45.8 | 52.5 | 37 | 48 | 32 | 8,412 |
| 19Newport | C | 39.5 | 51.8 | 22 | 39 | 25 | 4,394 |
| 20Bellows Falls | C | 32.1 | 52.2 | 18 | 18 | 13 | 2,891 |
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: Vermont for Other Lifestyles
Frequently Asked Questions
Is Vermont a good state for small business?
Vermont ranks #22 out of 50 for small business with a persona-weighted score of 59.3/100. Its strongest relevant category is Safety (78/100) and its weakest is Growth (30/100).
What is the best city for small business in Vermont?
Shelburne ranks #1 in Vermont for small business with a score of 71.4/100, followed by Middlebury and Essex Junction.
What factors are most important for small business in Vermont?
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.