City size matters when choosing a launching pad for a startup. And as many veteran entrepreneurs — and failed startups — understand well, bigger is not always better. Depending on an entrepreneur’s type of business and personal preferences, a city with a smaller population can be a better option.
Of course, every small city offers unique advantages and disadvantages to prospective ventures. Lower overhead costs, stronger relationships with customers and the potential to become a big fish in a little pond are among the benefits. But the drawbacks come plenty as well. For one, entrepreneurs seeking to cultivate a large professional network aren’t likely to fill their roster in a town with fewer residents. Other restrictions might include limited industry options, a less diverse customer base and difficulty attracting top talent.