Small business thrives in Portsmouth

(NECN: Lauren Collins) - Small business owners are thriving in one New Hampshire city. Portsmouth was named the Granite State's best city when it comes to starting a new business by Business Week Magazine. If you want to start a business in New Hampshire, Business Week says settle in Portsmouth: The magazine measured eleven factors to rate the city's entrepreneurial climate. Among them, the number of white collar and creative professions, start-ups per capita, and the level of venture capital funding. But local business owners say their success is all about location. Portsmouth is a tourist destination and one of the most walk able cities in the country. Customers who come here once, tend to come back: “They can come downtown it's locally owned businesses. It's their neighbors that they're doing business with.” In addition to that extremely loyal customer base, business owners in Portsmouth attribute their success to the support that they give each other. Before Carrie Saunders opened Anna Street studio in 2004, a local make up studio carried her custom handbags. “So as soon as we opened, we were up and running immediately as we were building out people were coming into the store, purchasing stuff before we could even put it out on the shelves.” Husband and wife duo Daniel and Pamela Morrison founded Optima Bank and trust a little more than a year ago: “We looked at markets all over New England and Portsmouth really rose to the top for us.” They wanted to be a resource for the city's business community, which they felt was overlooked by bigger, corporate banks: “It's been great. It's been busy, we've been well received by the community and we're having a great time. “ And while they'll be first talk up the success of the downtown retail area: “There's a lot more going on that's maybe less visible to people walking down the street or driving around the Portsmouth area. There's really a vibrant economy.” The downside to the great location -- high rents for many. But business owners say it's a worthy cost for the exposure they get.