Handshake economy still holds in small-town U.S. and Canada, survey finds

Advance Funds Network surveyed 3,005 small business owners to find where verbal agreements and handshakes still carry business weight in 2026. Greeneville, Tennessee, and Dawson Creek, British Columbia, topped the U.S. and Canadian lists of the most trust-based local economies.

Why it matters: - The survey suggests trust, reputation and repeat relationships still shape commerce in some smaller North American communities. - In those places, a handshake can still function as a practical business tool, especially where local networks are tight and word travels fast. - Advance Funds Network surveyed 3,005 small business owners to map where business owners believe a verbal agreement still matters more than a written contract.

What happened: - Advance Funds Network, a business financing company, surveyed 3,005 small business owners across the U.S. and Canada. - The survey asked whether people in respondents’ towns are more likely to do business on a verbal agreement or handshake than through written contracts. - Greeneville, Tennessee, ranked No. 1 in the U.S. - Oxford, Mississippi, ranked No. 2 in the U.S. - Mountain Home, Arkansas, ranked No. 3 in the U.S. - Murray, Kentucky, ranked No. 4 in the U.S. - Boone, North Carolina, ranked No. 5 in the U.S. - Dawson Creek, British Columbia, ranked No. 1 in Canada. - Portage la Prairie, Manitoba, ranked No. 2 in Canada. - Summerside, Prince Edward Island, ranked No. 3 in Canada. - Kenora, Ontario, ranked No. 4 in Canada. - Miramichi, New Brunswick, ranked No. 5 in Canada.

The details: - Greeneville stood out for its historic downtown, long-running Main Street culture and small-town setting in East Tennessee. - Oxford’s business culture centers on The Square, which has served as the city’s cultural and economic hub since incorporation in 1837. - Mountain Home’s local economy mixes small businesses, retirees, outdoor tourism and long-standing institutions. - Murray’s result lines up with its “Friendliest Small Town in America” recognition, plus Murray State University and local events. - Boone’s ranking reflects a mountain college town where residents and businesses overlap as neighbors, students, landlords, guides and regulars. - Dawson Creek’s economy is shaped by its role as the starting point of the Alaska Highway and by logistics, resource work and agriculture. - Portage la Prairie depends on agriculture, food processing, retail, trades, transportation and regional services. - Summerside’s close-knit island economy includes retailers, trades, fisheries, tourism, public services, families and community groups. - Kenora’s business life runs through tourism, cottages, boating, trades, Indigenous and long-standing local communities and seasonal services. - Miramichi’s trust network is tied to river life, forestry, fishing, local services, family businesses and trades.

Between the lines: - The rankings point to a simple pattern: the smaller and more interconnected the community, the more reputation can substitute for formal paperwork. - The U.S. and Canada lists both favor places where daily life and business relationships overlap, making word-of-mouth a stronger economic force. - The survey also suggests that trust remains a competitive advantage in communities where people expect to see one another again.

What's next: - Advance Funds Network has not announced any follow-up study or additional rankings. - The findings may be used to frame future conversations about how small businesses balance trust with legal protection.

The bottom line: - Even in 2026, some North American towns still run on reputation first and paperwork second.