Madison Is the 40th-Best Large City in the U.S. to Start a Business (2026)

Madison, Wis., is the 40th-best large city in the U.S. to start a business in, according to a new WalletHub study. The study compared startup opportunities across 100 of the largest U.S. cities based on 19 key metrics, including the five-year business survival rate, labor costs and office-space affordability. 

“Starting a business can be very scary, considering one in every five startups doesn't make it past the first year,” said WalletHub analyst Chip Lupo. “That's why it's especially important to live in a city that provides an environment where new businesses can thrive, with enough capital, workers and customers to keep it going long-term.”

In-Depth Look at Madison

Among the best large cities to start a business, Madison ranks:

• 90th for its business environment
• Second for access to resources when starting a business
• 50th for the cost of running a business
• 40th overall

Madison does especially well when it comes to the accessibility of financing where it ranks first in the nation. It also demonstrates business-friendliness by having the fifth-best universities. Good higher education produces future business leaders, many of whom get jobs in the state after graduation.

Madison struggles in other areas. It has the second-shortest average work week in the country, and it ranks 90th when it comes to employee availability.

Best Large Cities to Start a Business

Americans are known for their entrepreneurial spirit. However, recent years have been particularly challenging for business owners in the U.S., due to factors such as the COVID-19 pandemic, the Great Resignation and high inflation. Below, you can see which large cities provide a good environment for new business owners and which are struggling.

The methodology can be found on the full version of the article on WalletHub.