News Summary
A recent analysis by BILL identifies Birmingham and Tuscaloosa as rapidly emerging centers for small business activity in the U.S. Both cities have seen significant growth in B2B payments and commercial activity over the past year. Birmingham boasts an 84% increase in B2B payments since the pandemic began, while Tuscaloosa contributes to Alabama’s rising status in the small business landscape. The analysis highlights the region’s favorable climate for entrepreneurship and robust local support systems that foster small business growth.
Alabama has been spotlighted in a recent analysis by BILL, a small business fintech platform, as home to two cities—Birmingham and Tuscaloosa—that are rapidly emerging as centers for small business activity in the United States. According to the study, these cities have experienced significant growth in commercial activity over the past year, marking a notable trend in the small business landscape.
The analysis, which reviewed business-to-business (B2B) payments from enterprises employing between 2 and 200 individuals across 342 of the largest U.S. cities, reveals that mid-sized cities, including Birmingham and Tuscaloosa, are outpacing their larger counterparts in terms of business growth. This upward trajectory in B2B payments has been especially pronounced since the lows experienced during the COVID-19 pandemic.
Specifically, Birmingham has recorded an impressive 84% increase in B2B payments since the onset of the pandemic in March 2020, with a remarkable 131% surge over the last year alone. Additionally, the growth rate peaked at an increase of 1% when new tariffs were announced in January 2025, further emphasizing the city’s dynamic commercial environment. Tuscaloosa has also been spotlighted for its rapid small business expansion, contributing significantly to Alabama’s status in the report.
The Midwest and West regions of the United States have reported robust growth in small business activity, but the South leads the way as the fastest-growing region in B2B payments. This growth is accompanied by a notable population shift, as approximately 2 million people have migrated to Southern states following the pandemic, more than any other region in the country. In fact, 904,000 out of 2.1 million immigrants to the U.S. in 2022 opted for resettlement in the South, driven by appealing climate conditions, supportive business policies, affordable housing, and the rise of remote work opportunities.
Other Alabama cities like Mobile and Montgomery have exhibited growth in B2B payments, with Mobile seeing an extraordinary 437% increase since March 2020 and Montgomery achieving a growth rate of 50%. Huntsville has also made strides with a 128% increase in the same period. Birmingham and Tuscaloosa, while previously not in the top 25 for small business growth, have shown remarkable progress in recent months, particularly from January to May 2025.
The BILL report underscores the critical role that small and midsize businesses (SMBs) play in the economic vitality of American cities, highlighting their essential contributions to job creation, local investment, and opportunity development. The continued expansion of B2B payments indicates a thriving environment for entrepreneurs in Alabama.
Local support systems have been identified as a key element in driving the success of Birmingham’s small business community. Strong partnerships and community initiatives have created an aligned support ecosystem for emerging entrepreneurs. The Birmingham Business Alliance, for instance, actively assists local businesses through programs such as a complimentary 12-week Small Business Intensive designed for start-ups.
Moreover, key sectors fueling this small business growth in Alabama include healthcare and manufacturing. These industries benefit from a robust infrastructure and strong educational systems, which further enhance the state’s economic landscape.
In conclusion, the recent analysis from BILL marks a significant recognition of Birmingham and Tuscaloosa as rising stars in the world of small business. With a favorable climate for business, burgeoning industries, and strong support networks, these cities are well-positioned to continue their growth trajectory in the coming years.
Deeper Dive: News & Info About This Topic
- AL.com: Fastest Growing Cities for Small Business
- Wikipedia: Small Business
- The Bama Buzz: Alabama Cities for Small Business Growth
- Google Search: Small Business Growth in Alabama
- Bham Now: Birmingham’s Small Business Success
- Google Scholar: Small Business Activity in Alabama
- Montgomery Advertiser: Two Alabama Cities Rank in Top 25
- Encyclopedia Britannica: Small Business
- Business Alabama: Best Companies to Work for in Alabama
- Google News: Alabama Economy
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
