Huntsville, Alabama, has earned a spot as one of the best cities in the U.S. for small businesses, ranking #4 in CoworkingCafe’s latest report.

The city’s impressive growth, thriving economy, and supportive business environment have positioned it as a prime location for entrepreneurs looking to launch or expand their ventures.

Huntsville’s small business scene benefits from a combination of factors, including a 31.2% growth in job opportunities and a 10.6% increase in business establishments over the past year. The city’s affordability is also a key draw, with the cost of doing business 12% lower than the national average. These numbers have helped fuel an influx of startups, particularly in the tech, defense, and aerospace sectors.

The city’s strong entrepreneurial ecosystem is bolstered by the presence of over 40 co-working spaces, local business support programs, and a highly educated workforce, with 39.5% of residents holding a bachelor’s degree or higher.

Huntsville’s unique mix of innovation and affordability, along with its rapid population growth of 2.4% annually, continues to attract small businesses and startups looking for fertile ground to grow.

Other cities highlighted in CoworkingCafe’s report include Miami, Florida, which took the top spot for small businesses. Miami boasts a 45.2% growth in business establishments and a robust startup culture, making it an entrepreneurial hotspot. Following closely is Atlanta, Georgia, ranked #2, where 38% of residents hold a bachelor’s degree or higher, and the city’s strategic location has contributed to a 22.6% increase in job opportunities.

Austin, Texas, at #3, remains a tech-driven powerhouse, with a 35% growth in job opportunities and a thriving innovation ecosystem. Small business owners are drawn to Austin’s vibrant culture and low taxes, further bolstering its appeal for startups and creative industries.

For a full breakdown of the top cities, visit CoworkingCafe’s report.