St. Cloud is the Best City in Minnesota to Start a Business Because of Its Resources

This is a two-part series on entrepreneurship in St. Cloud. Tune in next month to meet some of the community's entrepreneurs and the available resource partners.

In a 2025 WalletHub survey of 1,3000 small cities with populations under 100,000, St. Cloud led all other Minnesota communities as the best place to start a business. It stood out specifically in the Access to Resources category, ranking among the Top 50 cities. This means people looking to start new businesses can find the support and tools needed to grow St. Cloud.

“A healthy entrepreneurial ecosystem allows business owners to learn from each other and engage with local resources,” says Cathy Mehelich, Economic Development Director for the City of St. Cloud Economic Development Authority (EDA). “This helps business owners fill in knowledge gaps and add to their skillsets. The companies become better because the owners aren’t doing it alone.”

St. Cloud offers several resources for business owners, whether they are seeking financing or office space. Explore the importance of having access to resources and get to know some of the organizations and communities available in St. Cloud. 

Launching a Business is a Risky Move

Entrepreneurs are incredibly brave. They are following their passions and creating something with their own skills and dreams. And success is not guaranteed. While the idea that half of all businesses fail in their first year is a myth (it’s actually closer to 20%), business owners take on all of the risk that something could go wrong.

The risk of starting a business becomes clear when you look at how most companies are funded. Here are a few fast facts from a SCORE survey of 1,000 small businesses:

• 66.3% of business owners used their personal funds to launch their companies. 
• 11.3% borrowed money from friends and family. 
• Only 3.4% of entrepreneurs work with investors. 
• 42% of entrepreneurs started out with less than $5,000 in cash reserves.

The average business owner doesn’t have endless funding through investors and venture capital firms. Instead, they are using their own money or borrowing funds to get their passion projects off the ground. Access to grants and funding options, free tools, and a strong community can make a significant difference in whether or not a business succeeds. 

St. Cloud Has Multiple Organizations Investing in Entrepreneurs

Money isn’t everything when starting a business. Entrepreneurs also need skills and knowledge to navigate essential tasks like hiring staff, filing taxes, and launching marketing campaigns. While founders can outsource these activities, they need at least a high-level understanding of how they work. Entrepreneurs have to wear multiple hats to keep up with all aspects of their operations.  

“When we work with small business owners, we try to understand what they are struggling with,” says Mehelich. “Some need help funding equipment purchases, while others want advice on permitting and licensing. If we can’t help directly, we point them in the right direction.”

The City of St. Cloud is fortunate to have multiple partners assisting entrepreneurs and business owners. These include:

• The City of St. Cloud EDA, which supports business retention, expansion, and attraction efforts.
• The Greater St. Cloud Development Corporation, a local non-profit serving a 25-mile radius around the City. 
• The St. Cloud Area Chamber of Commerce, a 155-year-old institution with 900 members, the fourth largest in Minnesota. 
• The St. Cloud Downtown Alliance, an organization focused on driving traffic downtown.

These organizations have their own roles and goals to support St. Cloud. They all work together to identify pain points in the small business community while helping individual entrepreneurs. 

Business Owners Can Take Advantage of Several Programs

The City of St. Cloud EDA wants to make it easy for new entrepreneurs and seasoned small business owners alike to find resources. It has created a digital resource document with sections tailored to the organization's needs.

The resource document starts with business and technical support, including the entrepreneurship program at St. Cloud State University, and then covers topics such as business counseling, loan and grant programs, tax credits, and even coworking spaces.    

“Some entrepreneurs need assistance finding loans to cover major purchases, while others want help thinking through their ideas,” says Mehelich. “This resource guide is updated frequently with new opportunities and tools to help entrepreneurs solve their problems.”

This guide highlights why St. Cloud ranked highly for small-business resources in the WalletHub survey. There are so many programs available and experts to reach out to that entrepreneurs don’t have to feel alone. The community is cheering them on and wants to see them succeed.

Download the Entrepreneur Resource Guide

Entrepreneurial Support Has Helped St. Cloud Bloom

St. Cloud is a wonderful city with diverse industries and businesses of all sizes. While we love our major employers and large corporations, small business owners also play an essential role in the community.

As more people come up with exciting ideas and want to follow their dreams of business ownership, we are here to help them. Contact the EDA today and tell us about your business. Whether you are brand new or planning for the next generation to take over, we can offer support.