Entrepreneurs looking to start a new business know that bigger is not always better when it comes to city size.

With 20% of new businesses failing within the first two years and 45% failing within the first five, finding the right city for your business can be crucial for its survival.

Every small city has its unique advantages and disadvantages for new business owners. Some benefits include lower overhead costs, stronger customer relationships, and the potential to be a big fish in a small pond.

Open for business signs
Getty/Thinkstock Images and Canva

However, there are also drawbacks, such as limited industry options, a less diverse customer base, and difficulty attracting and retaining top talent. Entrepreneurs who aim to build a large professional network may not make as many connections in a smaller town with fewer residents.

WalletHub again has gone on a search for the best small towns in the U.S. to start a business in. These towns had to be under 100,000 citizens, so Sioux Falls didn't make the cut, but two other South Dakota towns did.

South Dakota map
Getty/Thinkstock Images and Canva

Rapid City scored particularly well, landing in 70th place out of over 1300 American cities, and Aberdeen is now in 77th place.

READ MORE: New Sioux Falls Restaurant and Brewery Going Up

To make these determinations, WalletHub considered factors like; labor costs, length of workweeks, startups per capita, revenue per business, industry variety, education of the workforce, and more.

To see the complete report, go to WalletHub.

Source: WalletHub

South Dakota Foods You Must Try

Some foods are distinctly South Dakota. How many of these amazing South Dakota dishes have you tried?!

If you live in South Dakota chances are you've eaten many of the items on this food list.

But if you are visiting our state or if you just haven't gotten around to chowing down on these great eats, you need to get on it.

Some foods are distinctly South Dakotan. Here are the 9 South Dakota Foods You Must Try Before You Check Out …

Gallery Credit: Ben Davis

Stores That Use To be In The Western Mall In Sioux Falls


More From Hot 104.7 - KKLS-FM