Small Business in Rural Vermont
“You can start a business at half the cost and a quarter of the time in New Hampshire.” I would wager a guess that every potential entrepreneur has heard this statement in the Northeast Kingdom. Many a great idea, spark of inspiration, and gesture of economic impact has died on this very statement. Why start a business in St. Johnsbury, Vermont when a quick 20 min commute to work in Littleton, New Hampshire could result in potentially more dividends with a lot less cost and effort? Is it pride? Is it love? Is it foolishness? All great assumptions.
Small business is the back bone to U.S. rural economics. These businesses account for 84% of rural establishments, and over 50% of the rural workforce in the nation. (SBA Small Business Facts, 2023) In Vermont, this is compounded with 99% of all businesses being defined as small and employs 60% of the State’s workforce. Small business in Vermont also accounts for 87% of all Vermont’s exports. (Office of Advocacy, 2023) So why is this not a bigger focus in Vermont and for its lawmakers? Vermont year-after-year is ranked one of the least business-friendly states in the U.S. primarily due to a combination of high taxes and strict regulations. At the start of 2026, Vermont has become 50th in the Union for business-friendliness. (WCAX, 2026) Just for comparison to the earlier statement; New Hampshire is ranked 19th. I can speak from experience of how difficult it is to start a business in this state and how even more difficult it is to keep the lights on. Half of start-ups fail before its fifth birthday, so why make something that is already difficult even more so? Population size is also a big impact to business-friendliness when it comes to customers as well as workforce. Lower population has a negative effect on small business, and lack of small business has a negative effect on population. We have found ourselves in quite the chicken or the egg situation.
Vermont needs to change the tide. By becoming more business-friendly in the ways we can control, it will also improve many of the problems facing Vermont as a result. This requires a mindset shift of how best to support small business which will not only boost the State’s economic prowess, but in return, improve relocation of families into the state as more opportunities arise. More relocation, drives an increase in population, lowering individual taxes as the burden is distributed among more people. More families moving in, means more students in our schools, which, “should” better our education and spending problems. All in all, small business improvements result in the betterment of many of the State’s most pressing issues. Business regulatory reform is the primary starting point for this mindset shift followed by much needed start-up support, training services, and broadband infrastructure investment. Vermont needs small business: Vermont needs interstate migration.
So to answer those questions posed in the beginning, why start a business in St. Johnsbury, Vermont? It is pride - pride for the area we grew up in and pride to think, regardless of all the powers working against the start-up, this one will be successful to drive the much needed economic stimulation the area deserves. It is love - love for the people, neighbors and family who also call this town home. Love for the environment around us and the outdoor activities it provides. It is foolishness - Aren’t all entrepreneurs at face value foolish until proven successful?
