Feb. 5, 2025

Sioux Falls has been named the nation’s top city for small businesses, according to a ranking from the website B2B Reviews.

The methodology looked at five key metrics using U.S. Census Bureau data, which considers a small business to be one with 500 or fewer employees and at least $1,000 in annual revenue.

Here’s how Sioux Falls fared in all of the categories analyzed:

• City population as a percentage of the state: 23.28 percent
• City GDP as a percentage of the state GDP: 0.041 percent
• City unemployment rate: 1.5 percent
• Percentage of small businesses in county: 25.24 percent
• Mean hourly wage: $27.02

Sioux Falls was helped in the rankings by its low unemployment rate and high percentage of small businesses within the state.

To view the full report, click here.

The same organization also looked recently at the best states in which to start a business. South Dakota ranked ninth based on tax policies, the growth rate of small businesses, the likelihood of business survival, overall economic health and workforce-related statistics.