2 Alabama cities ranked among nation’s top 25 for small business growth

A recent economics report by BILL has listed a pair of Alabama cities among the nation’s best places for small businesses.

Tuscaloosa and Birmingham both made the top 25 as Alabama was one of just seven states to have multiple cities on the list. The survey ranked cities based on growth over the last 12 months + since January 2025 when new tariffs were announced.

“Every American city relies on one thing: the success of small and midsize businesses (SMBs). Growing businesses build communities. SMBs bring investment, create jobs, and unlock opportunity. The health of these businesses serves as a barometer of the health of our overall economy.”

BILL.com

According to the report, both cities have benefited from not only a growing population but also more local spending.

The company said it used an analysis of accounts payable spending, or business-to-business (B2B) payments, sent by SMBs from the largest 342 US cities with a population of 100,000 or more.

The data is meant to help experts understand the effects of recent changes on America’s large and midsize cities, including population migration and new business creation.

Birmingham + Tuscaloosa

BILL cited a trend of movement and small business growth in the South due to people leaving bigger cities in the northeast due to work environment changes made during the COVID-19 pandemic.

Birmingham and Tuscaloosa are both a part of that trend and even more specifically, part of a movement to midsize cities.

The two cities were not in the top 25 rankings since 2020 but both were made the cut in the survey from May 2024 to May 2025 and from Janaury 2025 to May 2025.

Some of industries responsible for the small business growth included:

• Information
• Construction
• Educational services
• Administrative and support
• Waste management
• Manufacturing

“SMB payments growth has followed the migration of people to midsize cities. The COVID-19 pandemic led to the rise in working from home, an increase in the digitalization of many services, and a boom in the creation of new SMBs. After all, many midsize cities have a lot to offer–pleasant weather, parks and nature preserves, a lower cost of living, a business-friendly environment, safety, good schools, and more space. The rise of the midsize city has offered opportunities to SMBs to thrive across multiple sectors of the economy.”

BILL.com

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