By Jennifer LeClaire

The South is chock full of small markets with big-time business benefits. Low operational costs and enviable quality of life are among the most notable attractions. Southern Business & Development magazine editors selected 10 cities that prove small markets are not only great business locations - they are also great places to call home.

Charlottesville has a small town feel with big city appeal. Businesses like Sprint, Lexis-Nexis and Northrop Grumman tap into the region's 78,000-plus skilled workers and leverage the city's highway system, rail and air service to transport goods from the heart of the East Coast to anywhere in the world. The region is connected to major national fiber backbones to offer next-generation telecommunication services. Thomas Jefferson founded the University of Virginia in Charlottesville almost 200 years ago and today it ranks as the best place to live in the USA in USA Today rankings.

Why we think Charlottesville is cool: Home to the University of Virginia and Thomas Jefferson and his "Academical Village," Charlottesville is a sophisticated market in a rural setting. It's a beautiful place with great K-12 schools and residents who act as if they are the happiest in the entire South. We think they are.

2. Greenwood, Mississippi

Greenwood is known as the land of magnolias, manners, colorful characters and warm welcomes. But businesses also know it as the land of opportunity. During the past four decades the area has successfully made the transition from an agriculture-based to an industrial-based economy. Extensive training programs and specialized mobile training units prepare the manufacturing workforce. Highways, rail, air and water transportation options are available with competitive costs. This area is popular with campers, fisherman and water sports enthusiasts, but also offers world-class ballet and operas within driving distance. The Cottonlandia Museum, the 300 Oaks Road Race, and the T-6 Fly-in and Formation Clinic are part of the endless array of local activities that make Greenwood a great place to live.

Why we think Greenwood is cool: Viking Range, the incredibly successful, high-end kitchen appliance designer and manufacturer has its headquarters and three manufacturing facilities in Greenwood. The company operates out of the Cotton Row District in downtown Greenwood and is one of the largest employers in the area. Viking and downtown Greenwood have become just about one-in-the-same. The company has been cited by the Mississippi Heritage Trust for saving one of Mississippi's most endangered historic places, the Irving Hotel in downtown Greenwood. The old Irving is now called the Alluvian Hotel and if you ever visit, you will be amazed by what is now a world class hotel located in the heart of the Mississippi Delta.

3. Aiken, South Carolina

Framed by Augusta, Ga. and Columbia, S.C., Aiken is a small market with big potential. The Savannah River Site is the area's largest employer, bringing thousands of highly skilled and educated employees to the region. The 215,000-member workforce also serves Fortune 500 companies like Kimberly Clark and Carlisle Tire. A sophisticated transportation grid puts businesses within a day's drive of two-thirds of the U.S. population and a pro-business tradition serves the needs of local companies. A summer retreat for many tourists, Aiken gets kudos for its quality of life with boating, fishing, golf, tennis, horseback riding and a downtown filled with cosmopolitan cultural events.

Why we think Aiken is cool: Aiken was a cool small town in the South decades ago when the social elite from the Northeast wintered there to take advantage of horsing activities such as polo. Aiken is widely known as one of the premier horse training communities in the U.S. Aiken and Edgefield Counties also are two of the most successful small counties in the entire South, winning "Small Market of the Year" in SB&D twice in 12 years.

When you think of Fairhope, you may think of recreational golf and beaches. But the Fairhope region is all that and more. A strong telecommunications infrastructure, a venture seed capital network, tax credits, a Foreign Trade Zone, and a laundry list of other incentives are attracting technology, aerospace, medical manufacturers and call centers, among other industrial interests. Local community colleges raise up the future workforce and employer-specific career center training offers additional instruction to new and existing businesses. And, of course, there are the miles of Gulf of Mexico beaches, low crime rates, modest housing costs and thriving cultural activities.

Why we think Fairhope is cool: Fairhope's downtown has been described as an Old World Village, where even the trash receptacles double as planters. Art galleries, cafes, boutiques, located right there near Mobile Bay, Fairhope is not only picturesque, it is one of the best places to live in L.A. (lower Alabama).

Hendersonville is a small market, but it may not stay that way for long. Henderson County has been among the fastest growing in North Carolina for over a decade with its diverse economic base. Hendersonville offers businesses access to major interstates, international airports, railways and a shipping port just four hours away. Industry services include workforce training, international marketing, research and development resources, financial programs and tax incentives. Championship golf courses, abounding arts, cultural festivals, and a historic downtown round out the site selector's list of reasons to locate in Hendersonville.

Why we think Hendersonville is cool: If you want to locate your business or your family to Hendersonville, you may have to get in line. This is one of the hottest small markets in the South for folks looking for greener pastures. A mountain setting simply makes the lifestyle that much better.

Danville has a do-what-it-takes spirit that offers one of the finest and most affordable business locations in the U.S. Strategically positioned along the North Carolina border and within a day's drive of over two-thirds of the U.S. population, this small market offers businesses the attention they deserve. You'll find some of the most innovative incentives and business development programs there, including tax and financial incentives, licensing and marketing assistance, and workforce training programs. The Riverwalk on the Dan River lures walkers and bikers through beautiful parks and historic sites, the Danville Science Center brings science to life, and the "Crossing at the Dan" brings the best in southern entertainment to the region.

Why we think Danville is cool: Name something cooler than a nanotechnology company locating a new manufacturing facility smack dab in Danville's downtown Tobacco Warehouse District. That's exactly what Luna Innovations, Inc. did last year.

Located in the heart of the Ozarks, Harrison offers urban conveniences with a friendly face. Arkansas is a natural for business with a 70,000-plus regional workforce, easy travel via roadways and commercial airports, a robust telecommunications infrastructure, incentives and training packages, and available land for build-to-suit facilities. Those are just some of the reasons why FedEx Freight East, Alltel, and Pace Industries settled there. The quality of life in Harrison rounds out that checklist with top-notch medical facilities, outdoor activities galore, water sports, shopping, dining and more.

Why we think Harrison is cool: Ranked as one of the "Best Small Towns in America," Harrison is one of those rural markets that features just about everything that great economic development can bring: a strong manufacturing, agribusiness and services economic base, a growing retirement and tourism market and a beautifully renovated town square. Like all cool small markets in the South, there is no shortage of friendly people. After all, living in a cool small Southern market is a good reason to be happy.

Lower taxes. Lower start-up costs. High work ethics. These are just some of the big reasons why this small market is attracting companies like Blue Bell Creameries, Federal Express and Owens Corning Fabrics. A strategic location supported by major interstates, freight carriers, railroads and air service offers business access to sizeable consumer markets. Training funds, low-interest loans, build-to-suit capacity and no personal or state income tax make New Braunfels a new option for new and expanding companies. Concerts in the park, nature trails, pristine rivers, and nearby big city (San Antonio and Austin) amenities make this small city a great place to live.

Why we think New Braunfels in cool: Combine a location between San Antonio and Austin, two of the coolest large Southern markets and a river like no other found in the South and you have cool.

One visit to this small town and you'll quickly understand why businesses there are "Positively Paducah." Beyond its southern charm and hospitality, Paducah boasts a healthy business climate, strong transportation connections via highway, railroad, waterway and air, a productive workforce and intriguing arts and entertainment. Paducah's economy is diverse, with companies like Paxton Media Group, BellSouth and U.S. Foodservice locating there. With a workforce of more than 15,000, colleges and universities within miles, tax incentives, and a desirable quality of life, Paducah is poised for growth. The Paducah Artist Relocation Program and the Luther F. Carson Four Rivers Center are bringing the best of the arts to this small market, and museums remind visitors and citizens alike of the town's revolutionary history.

Why we think Paducah is cool: Paducah's Artist Relocation Program was started in August of 2000 and is now a national model for using arts for economic development. To date about 50 artists have taken advantage of Paducah's financial and cultural incentives to move to the city. These artists have relocated from San Francisco, San Diego, Maryland, New York, Hawaii, North Carolina, Washington, Minneapolis, Michigan and many other markets.

Nestled in the foothills of the majestic Appalachian Mountains, Elizabethton is willing to put its money where its mouth is with business relocation incentives that are hard to pass up considering the success stories of companies that have accepted the offer. Just ask Star Building Systems. The company built a $23.9 million plant there and they'll tell you the excellent transportation infrastructure, financial resources, labor market and utilities and telecom grids are top-notch. The quality of life is also something to brag about with a small town atmosphere close to metro amenities and plenty of outdoor activities right in its own back yard.

Why we think Elizabethton is cool: Rivers, lakes, a wonderful downtown, mountain vistas and a colorful history earns this Northeast Tennessee small town a spot on our top 10 cool small markets list. Elizabethton is the home of the first permanent settlement outside the original 13 colonies and the first majority-rule system of American democracy.