Study: Cape among best places to start a business

Cape Girardeau is one of the best small cities in the nation to start a business.

So says a new report released last week in advance of National Small Business Week, observed during the first week in May.

The report, based on a recent study by the personal financial website WalletHub, ranked more than 1,300 American cities with populations between 25,000 and 100,000 on a variety of metrics such as business climate, the availability of resources such as labor and financing, and the overall cost of doing business in each community.

WalletHub's calculations listed Cape Girardeau 45th out of 1,337 communities.

"It is certainly nice to be recognized for a positive business environment by an independent source," commented John Mehner, president of the Cape Girardeau Area Chamber of Commerce, when told of the ranking.

"Business startups play an important role in economic development and one that will only increase in the future," he said.

Using a weighted formula for calculating rankings, out of a maximum score of 100 points, Cape Girardeau had a score of 58.77, just ahead of 46th place Gladstone, Missouri, which had a composite score of 58.76, and just behind Sandy, Utah, in 44th place, which had a score of 58.81.

The best small city to start a business, according to the study, is St. George, Utah, which scored 67.67 out of a possible 100 points.

Out of all 1,337 communities in the study, Cape Girardeau ranked second in the general category of "business costs," including office space affordability, labor costs, corporate taxes and overall cost of living. Only Goldsboro, North Carolina, has a lower cost of doing business, according to the study.

"In this poll, we ranked No. 2 in the U.S. for low cost to start and run a business, and that's fantastic," said Cape Girardeau Mayor Bob Fox. "Economic development and workforce issues are a top priority for our region. We're working diligently on these issues and in the next few years we'll see some amazing results."

Carbondale, Illinois, was the only other community in the immediate area to be ranked in the study, placing 197th on the list. With a population of just under 25,000, Paducah, Kentucky, was not included in the study.

Other Missouri communities with populations between 25,000 and 100,000 and their rankings were Chesterfield 139; Florissant 402; Grandview 99; Jefferson City 24; Joplin 188; Kirkwood 484; Lee's Summit 288; Liberty 39; O'Fallon 201; St. Charles 65; St. Joseph 279; St. Peters 242; University City 474; and Wentzville 73.

Because they have populations above 100,000, the Missouri cities of St. Louis, Kansas City, Springfield and Columbia were not included in the study.

The study was based on data collected from several sources, including the U.S. Census Bureau, the U.S. Bureau of Labor Statistics and the Federal Deposit Insurance Corp.

The complete report is available online by searching for "Best Small Cities to Start a Business" on the WalletHub website, www.wallethub.com.

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