Poughkeepsie is New York’s top small city for business. It ranks #304 in the U.S.

Are New York’s Small Cities Good for Starting a Business?
A new report from WalletHub suggests New York may not be a strong market for launching a business in smaller cities.
The study analyzed 1,334 small U.S. cities across key factors like business growth, access to capital, and operating costs. Out of those, 56 cities were in New York—and most ranked in the lower half.
How New York ranked
New York’s small cities placed between No. 304 and No. 1,317.
That spread shows limited upside compared to other states, especially for early-stage founders looking for lower costs and easier entry.
Best small cities in New York
Top-ranked cities in the state:
• Poughkeepsie (#304)
• Brighton (#448)
• Schenectady (#472)
• Troy (#474)
• Albany (#489)
Even the highest-ranked city, Poughkeepsie, landed outside the national top 300.
Worst small cities in New York
Lowest-ranked cities:
• Long Beach (#1,317)
• Lindenhurst (#1,302)
• New City (#1,277)
• Levittown (#1,270)
• Oceanside (#1,263)
These rankings reflect weaker business conditions, including higher costs and limited access to resources.
What the rankings measure
WalletHub evaluated cities across three categories:
• Business environment (growth, revenue, commute, industry mix)
• Access to resources (capital, talent, education)
• Business costs (rent, labor, taxes, cost of living)
As a result, cities with lower overhead and stronger access to capital ranked higher.
National comparison
The top small city in the U.S. is St. George, Utah.
The lowest-ranked is Pacifica, California.
California dominated the bottom of the list, with all bottom 10 cities located in the state.
Bottom line
Small cities can offer advantages like lower costs and tighter networks.
However, New York’s smaller markets still face structural challenges.
For founders, that means higher barriers to entry compared to faster-growing, lower-cost regions in other states.