Birmingham and Tuscaloosa Lead Small Business Growth in Alabama

News Summary

Birmingham and Tuscaloosa are emerging as top small business hubs in Alabama, showcasing significant growth in business-to-business payments. A recent analysis indicates that these cities have been among the fastest-growing in commercial activity, bolstered by an influx of new residents post-pandemic. The South leads the way in overall B2B payment growth, driven by favorable conditions for businesses and remote work opportunities. As these cities thrive, they underline a pivotal shift in the regional economic landscape.

Alabama is standing out in the national landscape as Birmingham and Tuscaloosa emerge as top contenders for rapid small business activity growth. A recent analysis conducted by BILL, a financial technology platform catering to small businesses, highlights these two cities as exceptional performers in commercial activity. Since the beginning of 2025 and throughout the previous year, Birmingham and Tuscaloosa have been identified as among the fastest-growing cities for small business activity in the United States.

The analysis scrutinized accounts payable spending, focusing primarily on business-to-business payments, from companies with workforces ranging between 2 to 200 employees. A total of 342 U.S. cities with populations exceeding 100,000 were included in this study. Under the classification system, mid-sized cities are defined as those with populations from 100,000 to 499,999, while cities with populations exceeding 500,000 are categorized as large cities.

Regional Trends and Migration Patterns

The data reveals that the South and West regions of the country have seen the most significant growth in B2B payments, with the South leading the charge. A considerable factor contributing to the increase in business activity is shifting migration patterns following the COVID-19 pandemic. The South has attracted approximately 2 million people from various regions across the U.S., significantly impacting its economic landscape.

In 2022, it was reported that about 904,000 of the 2.1 million people who moved to the U.S. chose to settle in the South. Several critical elements can be credited for this migration influx, including a favorable climate, business-friendly governmental policies, affordable housing, and an expanding array of remote work opportunities that have become prevalent post-pandemic.

Specific Growth Statistics

The growth in B2B payments is evidenced by impressive statistics from various Alabama cities. Mobile, Alabama, has recorded a remarkable 437% increase in B2B payments since March 2020. This figure further includes an additional 5% growth observed since January. Montgomery, another significant city in Alabama, has seen a 50% growth in B2B payments since the year 2020. Huntsville, known for its tech-oriented economy, has experienced a documented increase of 128% in B2B payments since the pandemic began.

Conclusion

As Birmingham and Tuscaloosa lead the charge in commercial activity growth, this trend underscores the South’s emerging importance in the small business sector. The influx of new residents, paired with steadily rising business transactions, indicates a promising future for these cities as they continue to build their economic foundations and attract further investment.

The insights provided by the analysis point toward a dynamic shift in the U.S. business landscape, showcasing how regional developments and choose-your-own-home dynamics can significantly alter the trajectory of small business activity. As more cities in the South continue to grow, the economic implications for the entire region could be substantial.