News Summary
Birmingham and Tuscaloosa are experiencing significant growth in small businesses, fueled by appealing climates and business-friendly policies. Data reveals these Alabama cities are attracting entrepreneurs and migrants, contributing to a vibrant local economy.
Birmingham and Tuscaloosa Make Waves in Small Business Growth
Good news is bubbling up from Alabama, as both Birmingham and Tuscaloosa are leading the charge in small business growth! According to recent findings from a fintech platform called BILL, these two cities have seen impressive boosts in their commercial activities over the last year, particularly since the beginning of 2025. It looks like Alabama is becoming a hotspot for entrepreneurs and small businesses alike!
How the Analysis Works
This insightful analysis zooms in on business-to-business (B2B) payments made by companies with anywhere from 2 to 200 employees. BILL took a closer look at payment trends in the largest 342 cities across the U.S., each boasting populations of 100,000 or more. What’s interesting is that mid-sized cities, particularly those with populations around 100,000 to 499,000, are experiencing even faster growth compared to their bigger counterparts. This trend underscores the unique and vibrant atmosphere that smaller cities can offer to businesses.
The South Shines Bright
As it turns out, the South and West regions are setting the pace when it comes to B2B payments, with the South coming out on top. Since the pandemic turned our world upside down, this region has attracted an astonishing 2 million people from other areas of the country. This influx is the highest migration rate among all U.S. regions. In 2022 alone, 904,000 new residents from other countries chose to call the South their home! It’s clear there’s something special happening down here.
What’s Driving This Growth?
So, what exactly is fueling this business boom? A few factors seem to be catching the attention of newcomers and entrepreneurs alike. The climate is appealing, and let’s not forget about the business-friendly policies that give a warm invitation to those wanting to start or grow their businesses. Plus, affordable housing and a significant increase in remote work opportunities have made relocating to the South an attractive prospect for many.
Other Alabama Cities on the Rise
Birmingham and Tuscaloosa may be leading the pack, but they’re not alone in this upward trend. Down in Mobile, businesses have witnessed a jaw-dropping 437% growth in B2B payments since March 2020, with a steadfast 5% increase just since January 2025. That’s quite an achievement! Meanwhile, Montgomery has also stepped up, reporting a solid 50% growth since 2020. And let’s not forget about Huntsville, where a 128% increase in B2B payments has made waves since the onset of the pandemic.
What This Means for the Future
The data paints an exciting picture for the future of small businesses in Alabama. With Birmingham and Tuscaloosa setting the stage for growth, more entrepreneurs may find their footing here, contributing to a vibrant local economy. As remote work becomes a staple in these changing times, it’s likely that the friendly Southern charm combined with a business-friendly environment will continue to attract new businesses and residents, offering unlimited opportunities.
In conclusion, the small business landscape in Alabama, particularly in Birmingham and Tuscaloosa, is thriving and shows no signs of slowing down. The remarkable growth in B2B payments is a testament to the resilience and adaptability of local entrepreneurs. So, whether you’re a business owner or just someone looking for fresh opportunities, keep an eye on these two cities—they just might be your next great success story!
Deeper Dive: News & Info About This Topic
HERE Resources
Huntsville Small Businesses Face Lending Challenges
Business Associations Endorse Tommy Tuberville for Governor
Senator Tuberville Receives Endorsement from ProgressPAC
Birmingham’s Tech Hub Ambitions Undeterred Despite Funding Setback
Birmingham, Alabama’s Journey to Become a Biotechnology Hub
Birmingham’s Sloss Tech Conference Expands to Three Days
Birmingham Mayor Opposes HB445 Hemp Regulations
Nationwide Property Taxes Surge by 10.4%
Birmingham Crowned Leader in Health Care Construction
New Real Estate Listings Available in Birmingham Area
Additional Resources
- AL.com: Fastest Growing Cities for Small Business
- Wikipedia: Small Business
- Business Alabama: 2025 Awards Finalists
- Google Search: Small business growth in Alabama
- Tuscaloosa Thread: Restaurant Closes
- Encyclopedia Britannica: Business
- Business Alabama: Best Companies to Work For
- Google News: Alabama business growth
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.
