Why Minneapolis, St. Paul Rank So Low For Business Startups In New Report

MINNEAPOLIS, MN — A new national ranking is casting a mixed light on the Twin Cities as a place to launch a business.

WalletHub ranked Minneapolis No. 63 out of 100 of the largest U.S. cities for starting a business in 2026, while nearby St. Paul came in even lower at No. 82.

The report evaluated cities across 19 metrics, including startup survival rates, labor costs, and access to financing, to measure where entrepreneurs have the best chance to succeed.

Despite the relatively low overall ranking, Minneapolis stood out in one key area: access to resources.

The city ranked No. 4 nationally in that category, reflecting strong access to capital, higher education institutions and a skilled workforce.

But that strength was offset by a weak showing in the business environment category, where Minneapolis ranked No. 86. That measure includes factors like small-business growth, startup density, and long-term survival rates.

St. Paul faced even steeper challenges. The city ranked last in the nation, No. 100, for business environment, contributing to its bottom-tier overall finish.

The findings suggest that while the Twin Cities offer the talent and financial infrastructure entrepreneurs need, other factors, such as growth conditions and business climate, may be making it harder for startups to take hold and succeed.

Cities in Florida and across the Sun Belt dominated the top of the rankings, with Tampa, Orlando, and Jacksonville taking the top three spots.

Those areas tend to benefit from lower costs, faster population growth and more favorable tax environments.

Here’s a closer look at the full top and bottom of the list:

Best Cities To Start A Business

1. Tampa, FL
2. Orlando, FL
3. Jacksonville, FL
4. Hialeah, FL
5. St. Petersburg, FL
6. Durham, NC
7. Raleigh, NC
8. Tulsa, OK
9. Oklahoma City, OK
10. Miami, FL

Worst Cities To Start A Business

91. Chula Vista, CA
92. Chesapeake, VA
93. Seattle, WA
94. Oakland, CA
95. Memphis, TN
96. Riverside, CA
97. San Francisco, CA
98. Honolulu, HI
99. San Jose, CA
100. Washington, DC

Check out the entire study here.