The size of your town makes a difference. The smaller your town, the less likely you have critical mass, economically speaking. So formulating economic development policies to support entrepreneurs is more challenging.
A small-small town will also have fewer support services. Tiny towns lack:
- office supply stores
- management consultants
- marketing support professionals
- advertising agencies
- computer repair and support techs
But if you are thinking too much about these issues, you are looking for an excuse to not start. In a flat world, in a connected world, you can usually procure those services from outside the region.