Small Businesses along 6th Street in Rural Alexandria, Minnesota. Editorial credit: Sam Wagner / Shutterstock.com.

9 Towns In Minnesota With Thriving Local Businesses

Minnesota's rich natural scenery, featuring vast lake waters and endless riverways, puts it on the map as a prime Midwest tourist destination. The North Star State is home to bustling cities like Minneapolis and Saint Paul, which host Fortune 500 companies and heralded multinationals. However, some of Minnesota's greatest gems lie beyond the urban centers, in the little towns scattered between the forests and waterways. Here, the entrepreneurial spirit runs high as communities rally around locally owned enterprises.

In the following towns in Minnesota, visitors will find downtowns thriving with independent shops, cafes, breweries, and markets cultivated from a sense of pride and produce. By experiencing the homegrown businesses first-hand, tourists enjoy unique offerings and directly sustain the economic foundation of these friendly destinations.

Winona

The "Stained Glass Capital of the United States" expresses a rich historical heritage, boasting a downtown with over 100 sites listed on the National Register of Historic Places. The neighborhood is also home to locally owned businesses that have stood the test of time, symbolic of the town's undying entrepreneurial spirit. Antique shops are popular in Winona, promising visitors a chance to leave with a precious find from Treasures Under SugarLoaf or the Rusty Bucket. Meanwhile, River City Outlet is a one-stop shop for homeware in Winona, offering assorted home decor and functional goods.

Those interested in fashion and apparel shopping can explore local trends at a long list of boutiques in the town. Melange Resale Boutique offers an unforgettable experience, and the same is true for Loft on the Third.

Excelsior

Small businesses in downtown Excelsior, Minnesota
Small businesses in downtown Excelsior, Minnesota.

A unique blend of the new and old gives this little village of Hennepin County a distinct vibe. Its historic commercial district is listed on the National Register of Historic Places and houses diverse boutiques, restaurants, antique shops, and specialty stores, reflecting a booming business environment. Excelsior has an artistic personality, evident from the different art centers, allowing visitors to admire and buy cute local crafts from establishments like Water Street Gallery and Minnesota Makers. Multiple locally run restaurants serve different flavors to cater to empty stomachs in town. Popular eateries include Maynards and Coalition Restaurant.

Excelsior Brewing Company best embodies Excelsior's modest yet exciting craft brewery culture. This lake-themed microbrewery offers an on-site taproom with a continuous flow of freshly crafted beers.

Red Wing

Historic downtown Red Wing, Minnesota
Historic downtown of Red Wing, Minnesota. Editorial credit: Robert H Ellis / Shutterstock.com.

This adorable riparian community along the Mississippi River banks promises various experiences, from wildlife watching and outdoor adventures to art exploration. Thanks to a cluster of thriving local businesses, it is also a delightful shopping hub. Main Street features multiple shopping outlets, selling everything from antiques and apparel to home goods. You can stop by Whimsy's to check out trendy fashion accessories or Pottery Place Antiques if you want a lovely clay souvenir. Those with a sweet tooth will fancy tasting locally made chocolates at Red Wing Confectionery, which also serves delicious ice cream flavors.

Every Saturday along Levee Street, the Red Wing Farmers Market offers an exciting opportunity for visitors interested in shopping for local produce and handicrafts and mingling with friendly local vendors.

Lanesboro

Downtown Lanesboro, Minnesota
Downtown Lanesboro, Minnesota. Editorial credit: Wirestock Creators / Shutterstock.com.

Situated about 120 miles from the Twin Cities, Lanesboro is a quintessential Midwestern village with oozing small-town vibes. It has beautiful natural surroundings, with the Root River flowing through, but it also harbors a lovely downtown. Art galleries, seasonal farmers markets, restaurants, and other independently run businesses culminate in a vibrant neighborhood. Craft beer lovers will be glad to know Lanesboro offers a chance to sample locally made beers at Sylvan Brewing. The town's first-ever brewery in a century serves delicious beer in a friendly atmosphere.

Tasty eats are a major draw of visitors to Lanesboro. They like to visit Juniper's Restaurant for made-from-scratch meals, followed by sumptuous dessert at Another Time Ice Cream. Lanesboro hosts several outlets, including Amish Experience, where you can find cute Amish-made crafts as a souvenir.

Lake City

Lake City, Minnesota, on Lake Pepin.
Lake City, Minnesota, on Lake Pepin. Image credit: Wikideas1 via Wikimedia Commons.

A village surrounded by water, this lovely community enjoys access to Lake Pepin and the Mississippi River. It is an exciting stop for travelers searching for aquatic adventures. It also has a beautiful downtown area, where many local businesses deliver a unique shopping experience. You'll find several antique and craft stores, such as Lakeside Antiques and Pumpkinberry Stitches, where you can buy an adorable gift item to take home. Meanwhile, Lake Pepin Pearl Button Company is among the most recognized shopping destinations in the region, offering a wholesome experience featuring clothing, decor items, gifts, and accessories.

Lake City delivers a delectable wine and dine experience across its different eateries and watering holes. At Port 104, patrons enjoy tasty eats and drinks served in a small-town atmosphere.

Stillwater

Stillwater, Minnesota
Downtown Stillwater, Minnesota. Image credit: Dougtone, via Wikimedia Commons.

Considered the state's historic birthplace, Stillwater is one of the oldest towns in Minnesota. It was first settled in 1843 and lies along the St. Croix River, offering a mix of historic charm and natural splendor. Across the quaint downtown, various homegrown businesses provide a hint of local character and heritage. For instance, River Siren Brewing represents a vibrant brewery scene supplying tasty craft beers to locals and visitors alike. Stillwater is an excellent shopping destination with multiple malls, boutiques, and antique shops. As souvenir lovers speculate on vintage treasures at Midtown Antique Mall, shopaholics can check out the latest trends at Whatnot Boutique.

The town has two prominent farmers markets that unite vendors and buyers for an exciting trade day. Stillwaters Farmers' Market and Axdahl's Garden Farm and Greenhouse are constantly flocked with people interested in fresh produce, baked goods, and traditional handicrafts.

Alexandria

Aerial view of downtown Alexandria, Minnesota
Aerial view of downtown Alexandria, Minnesota.

This thriving Douglas County community is among the fastest-growing towns in western Minnesota. It harbors a vibrant local economy, and various independent business owners dominate its town center. Arts are a big part of local culture, inviting tourists to explore different creations by regional artists and buy some at Three Havens Artworks and Past & Present Home Gallery. Those looking to shop on a budget don't have to break the bank when in Alexandria; Ron’s Warehouse sells an assortment of goods and wares at a discount.

If you appreciate the taste of finely crafted wine, consider touring Carlos Creek Winery. This homegrown winery keeps Alexandria's wine scene alive, with over 20 internationally recognized apple and grape wines produced.

Marshall

Aerial View of Downtown Marshall, Minnesota at dusk
Aerial View of downtown Marshall, Minnesota, at dusk.

A regional hub in southwest Minnesota, Marshall is a popular destination with a mix of local and internationally recognized brands. The town has numerous shopping opportunities, reflecting a lively business environment. Those interested in fashion and apparel can stop at trendy Main Street stores like Coco Avenue and Rustic Hideaway Boutique to sample the local trends. Furthermore, Nessa's Naturals specializes in providing high-quality natural health and beauty products with personalized service.

After a long day exploring the town, visitors can restock with a wholesome meal in the welcoming atmosphere of Wooden Nickel Burgers and Brew or unwind with a glass of cocktail at Varsity Pub & Extra Innings.

Faribault

Downtown Faribault, Minnesota.
Downtown Faribault, Minnesota. Image credit: Doug Kerr via Wikimedia Commons.

Situated about 50 miles from the bustling Twin Cities, this suburban community in Rice County offers travelers a more casual shopping experience yet just as delightful as its famous neighbors. The Kanne Orchard—Farmer's Market is where tourists join locals in shopping for farm produce, baked goods, and cultural crafts from local crafters and farmers. Souvenir hunters can also look forward to finding exquisite antique treasures in Faribault across its numerous souvenir stores, such as the Junk Monkey and Keepers Antique Shop.

More shopping opportunities await fashion lovers and beauty enthusiasts, offering multiple boutique stores specializing in classic and contemporary trends. Notable outlets include Annie-Belle Creations and Chappuis Jewelry.

Final Thought

From the bustling riverside towns of Stillwater and Winona to the charming communities of Excelsior and Lanesboro, these lively towns in Minnesota demonstrate the power of local businesses to energize small-town economies and cultural offerings. By supporting the independent shops, galleries, eateries, and markets unique to each locale, visitors not only gain a true taste of each destination but also ensure their long-term vitality. Experiencing Minnesota's amenities need not stop at the largest urban centers - a journey off the beaten path reveals hidden gems worth discovering.

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