7.  Houston, Texas

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On the plus side, entrepreneurs applaud Houston for its less onerous regulations and licensing requirements.

They also gave the city an "A+" in overall business friendliness.

At the same time, business owners say growing competition is something they have to contend with.

"Houston is a big place. It is easy to slip through the cracks," said a videographer. "This is a place where businesses boom and bust daily."

"It is very difficult to get loans for small businesses and leasing store space is very expensive," wrote another entrepreneur.

First published August 19, 2015: 1:44 PM ET
Methodology: Thumbtack polled its users in December 2014; 18,000 small businesses in its database of 150,000 active monthly users responded. Entrepreneurs from all 50 states replied, but the ranking excluded 14 states that didn't meet the threshold of receiving at least 50 responses.

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