The study, conducted by confectioners Geraldo’s, analysed data from a House of Commons report to determine the areas with the most small and micro businesses.
Caerfyrddin has 4,375 small businesses, placing it second nationally behind Ceredigion Preseli, which has 4,525.
Montgomeryshire and Glyndwr, Brecon, and Dwyfor Meirionnydd followed in third, fourth, and fifth respectively.
With 5,320 businesses in total, Caerfyrddin’s 4,375 small businesses represent 82 per cent of the business population in the area.
The study comes as the UK enters the biggest shopping period of the year, which could be crucial for the survival of many businesses.
The study also highlighted the areas with the fewest small businesses.
Aberafan Maesteg had the lowest number in the country, with just 1,355 small businesses, followed by Rhondda and Ogmore with 1,360.
The study also looked at the UK as a whole, with the cities of London and Westminster having the most small businesses in the UK, with 49,160 between them.
This was followed by Holborn and St Pancras with 22,610 and Hackney South and Shoreditch with 14,695.
Four areas were tied for the highest percentage of small businesses in the area.
Streatham and Croydon North, Lewisham West and East Dulwich, Mitcham and Morden, and Harrow East all saw small businesses make up 88 per cent of the businesses in their area.
At the other end of the scale, Na h-Eileanan an Iar had the fewest small businesses with just 920, followed by Glasgow North East with 1,225.
The Hamble Valley had the lowest percentage at just 64 per cent, followed closely by Belfast North with 65 per cent.
Toni Dawson, owner of Geraldo’s, said: “Running a small business can be an incredibly rewarding experience, but it takes an enormous amount of effort and time to shape it and keep it moving forward.
“In 2023 it was estimated that 20 per cent of small businesses close within their first year, and 60 per cent can collapse within their first three years of existence, and with the increase in costs that have come in the past 12 months, that figure could easily rise.
“The statistics show us that even in areas with the lowest percentages, small and micro businesses make up more than half of the organisations in any area.
“This is why it’s so important to support those businesses whenever possible.
“From providing workplaces, bolstering the local economy, to providing vital services or simply increasing the choice people have in where they spend their money, small businesses are an incredibly important part of a local community, but ultimately, they need the support of the communities they serve.
“I’ve been very fortunate to have the support of the local community here in Largs for almost 25 years in business through many ups and downs, and that support has helped Geraldo’s to grow in ways I couldn’t have imagined when I first started out.”
