And the best ‘small’ city in the U.S. for start-ups is … where?

(This post originally appeared on The Washington Post)

oming more and more attractive.

“I have seen tremendous support for small-town businesses from local leaders, schools and residents,” said Michael Glauser, executive director of the Center for Entrepreneurship in the Huntsman School of Business at Utah State University. “One small business owner I know has a store in a small town and one in a large town. He gets far more support and stronger sales in his small-town operation. People want him to succeed and stick around.”

What’s considered to be a “small” town? It’s a city that has from 25,000 to 100,000 residents. Although challenged by limited professional networks, fewer industries, a narrower customer base and a struggle to draw talented workers, a smaller metropolis also comes with much lower overhead costs, closer client relationships and the potential to become a big fish in a little pond.

Holland ranked the highest for the best average score among all categories. But depending on your priorities, other small cities in certain regions of the country may be even more attractive. For example, certain towns in Texas led the pack in small cities where businesses earned the most revenue. Three small towns in Maryland (Salisbury, Cape Girardeau and Raytown) had the cheapest office spaces, and three Utah cities (Sandy, Taylorsville, South Jordan) had the most accessible financing. The D.C. metro region looks like the best place among small towns there to find the most educated workers.

“For many businesses, location no longer matters,” said George Langelett, a professor in the economics department at South Dakota State University. “The reality today is that with YouTube, anyone can obtain a worldwide audience, and with an Internet website and proper marketing, anyone can be part of a worldwide marketplace. With eBay, Amazon and Alibaba, anyone can connect with suppliers from around the world.”

As the cost of housing continues to rise in places like San Francisco and New York, it seems like a no-brainer that an increasing number of start-ups will choose smaller towns that offer a better quality of life for employees to put their roots down and grow.