Published: May 29, 2025
by Joshua Sophy
In Small Business News
GoDaddy has released its list of the Most Entrepreneurial Cities of 2025, revealing that both major urban centers and smaller suburban communities are fueling a surge in small business creation across the United States.
The ranking, based on data from the GoDaddy Small Business Research Lab, highlights the top 10 U.S. cities that experienced the highest number of new businesses launched in the previous year. Leading the list is San Francisco, California, which added over 173,000 new ventures in 2024, representing a 122% year-over-year increase. Los Angeles followed with 153,681 new businesses and a 50% growth rate.
Smaller cities also saw significant growth. Alameda, California, reported 6,300 new businesses—an 83% increase—while Ontario, California, saw a 100% rise with 9,789 new ventures. Other high-ranking cities include Frankfort, Illinois (10,370 new businesses), and Katy, Texas (6,660 new businesses).
Two cities named Wilmington—Delaware and North Carolina—also made the top 10, with 8,811 and 6,734 new businesses respectively. This trend underscores the growing entrepreneurial activity in less traditional locations.
The complete top 10 list is as follows:
| City | New Businesses Created | Growth Year Over Year |
|---|---|---|
| San Francisco, CA | 173,054 | 122% |
| Los Angeles, CA | 153,681 | 50% |
| Denver, CO | 63,010 | 56% |
| Oklahoma City, OK | 11,180 | 21% |
| Frankfort, IL | 10,370 | 16% |
| Ontario, CA | 9,789 | 100% |
| Wilmington, DE | 8,811 | 14% |
| Wilmington, NC | 6,734 | 36% |
| Katy, TX | 6,660 | 12% |
| Alameda, CA | 6,300 | 83% |
“Small businesses are vital in fueling growth across the country, but they don’t always get recognized for how much they punch above their weight,” said Gourav Pani, president, Independents at GoDaddy. “These rankings show new businesses emerging from every corner of the country, and entrepreneurs are proving they can succeed anywhere.”
According to GoDaddy, the data shows California continues to be a stronghold for new businesses, with four cities appearing in the top 10 despite the state’s high costs. The rise of suburban markets and unexpected entries like Frankfort and Ontario challenge assumptions about where entrepreneurship flourishes.
GoDaddy’s Small Business Research Lab, formerly known as Venture Forward, has been analyzing small business trends across the U.S. for seven years.
Image: Canva
Joshua Sophy is the Editor for Small Business Trends and has been a member of the team for 16 years. A professional journalist with 20 years of experience in traditional media and online media, he attended Waynesburg University and is a member of the Society of Professional Journalists. He has held roles of reporter, editor and publisher, having founded his own local newspaper, the Pottsville Free Press.
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Joshua Sophy