America’s most supportive cities for small businesses

In a recent Nav survey, we found that one in three Americans shop local weekly — but which cities support small businesses most?

In a world that seems to be dominated by national retailers, entrepreneurs are looking to break the mold and boost their local economy. At Nav, we see this firsthand through our work with entrepreneurs. That’s why we set out to learn more about where Americans are rallying behind their local businesses most. 

To do this, we surveyed residents in 40 of the largest U.S. cities and asked about their shopping habits. Using these responses we created a support score — and ranked cities from most to least supportive. 

In addition to our consumer survey, we also surveyed small business owners to learn more about their experiences and gain insight into how shoppers can support their favorite local businesses outside of simply shopping there. Read on to learn more about our findings and which cities are rallying hardest for small businesses. 

Before diving into the results, here’s how we conducted our study.

Methodology

In this study, we set out to learn which U.S. cities rally hardest for small businesses. To do this, we first surveyed residents in 40 of the largest cities and asked about their shopping habits. We asked a variety of questions about how often they shop small businesses, what types of products and services they purchase, how important it is to them that their money stays in their community when shopping, and more. 

We then awarded points to responses that represented support for local small businesses and calculated the average support score for each city. We then adjusted those scores on a scale of 0 to 100, with 100 representing the most support. 

In addition to surveying consumers, we also surveyed more than 500 small business owners across the country to learn how they feel support from locals has changed in recent years, what ways their customers support them aside from buying goods or services, and more.

Where Americans show the most support for small businesses

Whether due to personal ties or an interest in the products, many Americans have found themselves browsing local small businesses in their city. While some people only occasionally visit these establishments, others turn to these local businesses for a majority of their shopping. When analyzing shopping habits from our survey, we calculated support scores to better understand which parts of the country are leading the charge to shop local. 

In first place with a score of 98.27 out of 100 is Austin, TX. Residents of the city are the most likely in the country to say they shop local small businesses at least once a week. 

This is followed by New York, NY, which earned a support score of 96.86 out of 100. Overall, residents of the Big Apple are the most likely in the country to exclusively shop local small businesses as opposed to shopping online. 

Portland, OR, is up next, claiming third place with a score of 95.90, as 84% of residents say it’s important to them that their money stays in their community when they shop. 

Following closely behind in fourth place is New Orleans, LA, with a score of 95.25 out of 100. While many small businesses offer a smaller selection of items than national retailers, having a wide variety of options in a city makes it easier to choose local instead. In New Orleans, 96% of residents report they are satisfied with the range of small businesses in their city — the highest percentage in the U.S.

In general, 38% of Americans say they exclusively shop small businesses locally, as opposed to online. Overall, shopping all across the country begins to spike as we reach the holiday season each year.

We found that overall 57% of Americans plan to shop at local small businesses this Small Business Saturday, and nearly 1 in 2 typically shop small businesses on Cyber Monday as well.

Cities that spend the most at small businesses

In addition to the overall resident support, we also wanted to gain more insight into the amount being spent at small businesses. We learned that the average American spent $469 at local small businesses in the past year, and 41% say they spent more than $500.

Once again, when analyzing spending habits by city, Austin, TX leads the way. The average resident reports they spent $627.30 in the past year. 

Cleveland, OH, comes in second with residents spending about $50 less than those in Austin ($578.00), and Portland, OR, follows closely behind in third place with an average spend of $555.52. 

On the other end of the spectrum, we found Kansas City, MO, residents spent the least at small businesses in the past year at an average of $372.11.

This is followed by Los Angeles, CA, ($388.11) and Orlando, FL, ($391.79). We found that in some cases Americans are willing to spend more just to support a small business. Overall, nearly 1 in 3 people are willing to pay $10 to $20 more on an item or service, and 1 in 4 say they’d spend more than $20. 

In many parts of the country, this extra spending is viewed as giving back to the community. We found that 53% of Americans believe that shopping at local small businesses makes a big difference in their community’s economy.

Another 71% say that it’s important to them that their money stays in their community when they shop.

America’s favorite small business buys

We also wanted to learn which types of small businesses are most beloved by Americans. To do this, we asked respondents about more than 20 categories of small businesses to learn which they shop at most often. 

With homemade cookies and freshly brewed coffee, it’s no surprise that local coffee shops and bakeries top our list as the most popular category of small businesses. Overall, 84% of respondents say they frequently stop in at their favorite local shop for tasty treats. 

Although national retailers offer a wide variety of items, it can be difficult finding the perfect, unique gift for a friend at your local Walmart.

Perhaps this is why three in four Americans regularly find themselves shopping at small businesses that offer gifts and specialty items.

Small businesses are also a hot spot for creatives across the country, as 67% report frequently shopping at stores that sell art, crafts, and handmade goods.

Similarly, 62% of respondents with a green thumb are growing their passions while also supporting their local plant, flower, and garden supply shops, making the category the fourth most popular.

When asked about the range of local small businesses available in their city, 87% of respondents shared they are satisfied with their selection.

Additionally, we wanted to learn about the other motivations Americans have to shop local. Overall, supporting their local community was identified as the most common motivator with 71% of people noting it. Following closely behind at 67% is the ability to buy unique items they can’t find elsewhere. For more than two-fifths of shoppers, it’s the quality of customer service that keeps them returning to their favorite local small businesses. 

Small business owners’ advice on how to support local shops

If you’re looking for other ways to support other local businesses, we can help. In addition to consumers, we also surveyed small business owners like you across the country to gain insight into the best methods for showing support aside from spending money with them. 

We found that nearly two-thirds of owners say support from local residents has increased in the past couple of years, so it’s time to keep boosting that support. 

Top ways to support local small businesses

1. Recommend their business to others
2. Leave a positive review
3. Introduce them to fellow business owners

Up first, we found that the best way to benefit your local stores is to recommend the business to others  —  friends, family, coworkers, and potential business partners.

By sharing your opinions with other people in your life, you carry the power to influence others and ensure your favorite business continues to thrive. 

The second most important method of support we found was to simply leave a positive review. By sharing your thoughts on the products or services, you can help guide other potential customers to their store.

The third most useful method of support among business owners is introducing them to other business owners, which is noted by one in 10 owners. 

This is followed by 10% who say posting about or engaging with their business on social media is the best way to show support. Finally, 9% say sharing business products or services that may help them with their business is beneficial. 

When it comes to the types of support owners report they are already receiving, we discovered customers being friendly and respectful toward owners and their employees is most common, with nearly one in two owners noting it. While kindness may sound like a simple gesture, it can go a long way to ensure the success of a business. 

Similarly, one in three owners say their customers have left positive reviews to show their support. For one in six owners, their shoppers have shown their support on social media by posting about or engaging with their business on the platform. 

Locals support your storefront while Nav supports your growth

From the family-owned hardware store down the road to your favorite vendor at the local farmers market, small businesses depend on their neighbors. Whether you are blessed with a vast variety of local businesses in your area or entrepreneurs are just getting their start in your town, we at Nav encourage you to to choose local when you can. After all, supporting small businesses today builds stronger communities tomorrow. 

And shoppers are not the only ones who can rally behind small businesses. At Nav, we support business owners with tools to monitor and build business credit. We know the finance side of running a business can be overwhelming. That’s why we provide tools to help you monitor your cash flow health, as well as your personal and business credit health.

So wherever you are in your small business journey, you can rely on Nav to help you navigate every aspect of your financial health — from business credit cards to learning how to improve your business credit score, our team has you covered.