Skip to Content

Which states have a thriving small-business landscape, according to data?


Sean Pavone // Shutterstock

Which states have a thriving small-business landscape, according to data?

A small downtown main street.

Small businesses are the backbone of the American economy. Defined by the Small Business Administration as firms with fewer than 500 employees, small businesses make up 99.9% of all companies. They also fuel employment, with nearly half (46%) of private sector workers employed at small businesses, accounting for 43.5% of the country’s overall economic output.

U.S. NAICS Codes analyzed data from the Bureau of Labor Statistics to see which states have the healthiest environments for small businesses.

In the United States, around 4 in 5 small businesses are solo ventures without employees, which can include real estate brokerages, construction contractors, freelance artists, and small online retailers. Small businesses with employees tend to be more dynamic than their larger counterparts, accounting for at least 3 in 5 (63%) new jobs in America between 1995 and 2021.

The demographics of who owns small businesses reveal disparities along gender and racial lines, according to SBA data. Women tend to be underrepresented, making up less than half (42%) of solo business owners and merely 22% of businesses that employ workers. Black Americans, comprising 14% of the population, own 12% of solo ventures but just 2.4% of those with employees.

An important distinction for BLS data is that it covers establishments rather than firms. This means the numbers correspond to individual physical locations and include big corporations with many small locations—think Starbucks or McDonald’s—each accounting for a single establishment. Even so, the numbers still indicate how small businesses are faring.

States were ranked by the percentage change in the number of small establishments between 2022 and 2023. Montana did the best in 2023 by this measure, with small establishments in the Treasure State growing by 12.1%. Small businesses also boomed in Virginia and Oregon. In contrast, Washington state saw a 15% decline in small establishments in 2023, indicating a less hospitable environment for small enterprises.

Read on to see how small businesses fared nationwide in 2023.



Canva

#50. Washington

Seattle skyline.

– Small establishments, 2023: 231,670
— 15.2% decrease from 2022
— 98.3% of all establishments
– Total small establishment workers:
— 1,643,020 (55.5% of total private sector)
– Average weekly small establishment wages in 2023: $1,300
— $470 a week below state private sector average



Canva

#49. New Mexico

A small market in Santa Fe.

– Small establishments, 2023: 61,010
— 4.3% decrease from 2022
— 98.5% of all establishments
– Total small establishment workers:
— 426,590 (63.7% of total private sector)
– Average weekly small establishment wages in 2023: $0,960
— $120 a week below state private sector average



Canva

#48. Nebraska

An aerial view of downtown Omaha.

– Small establishments, 2023: 70,880
— 4.1% decrease from 2022
— 98.5% of all establishments
– Total small establishment workers:
— 515,080 (62.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,030
— $140 a week below state private sector average



Canva

#47. Iowa

The Des Moines skyline.

– Small establishments, 2023: 102,170
— 0.5% increase from 2022
— 98.3% of all establishments
– Total small establishment workers:
— 788,220 (61.4% of total private sector)
– Average weekly small establishment wages in 2023: $1,020
— $170 a week below state private sector average



Canva

#46. Indiana

An aerial view of Nappanee, IN.

– Small establishments, 2023: 178,890
— 0.9% increase from 2022
— 97.7% of all establishments
– Total small establishment workers:
— 1,508,550 (55.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,040
— $170 a week below state private sector average



Canva

#45. Maryland

An aerial view of Annapolis.

– Small establishments, 2023: 179,250
— 1.2% increase from 2022
— 98.2% of all establishments
– Total small establishment workers:
— 1,270,900 (59.0% of total private sector)
– Average weekly small establishment wages in 2023: $1,320
— $160 a week below state private sector average



Canva

#44. New York

A busy New York street.

– Small establishments, 2023: 667,110
— 1.3% increase from 2022
— 98.4% of all establishments
– Total small establishment workers:
— 4,151,540 (52.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,510
— $570 a week below state private sector average



Canva

#43. Pennsylvania

Downtown Scranton.

– Small establishments, 2023: 365,180
— 1.7% increase from 2022
— 97.9% of all establishments
– Total small establishment workers:
— 3,012,770 (57.5% of total private sector)
– Average weekly small establishment wages in 2023: $1,230
— $190 a week below state private sector average



Canva

#42. Illinois

The downtown Chicago skyline at sunset.

– Small establishments, 2023: 378,550
— 2.3% increase from 2022
— 97.9% of all establishments
– Total small establishment workers:
— 2,550,780 (49.4% of total private sector)
– Average weekly small establishment wages in 2023: $1,330
— $270 a week below state private sector average



Canva

#41. Wyoming

An aerial view of Casper, WY.

– Small establishments, 2023: 28,000
— 2.8% increase from 2022
— 99.3% of all establishments
– Total small establishment workers:
— 166,260 (80.7% of total private sector)
– Average weekly small establishment wages in 2023: $1,080
— $80 a week below state private sector average



Canva

#40. Massachusetts

Downtown Northampton, MA.

– Small establishments, 2023: 282,200
— 3.3% increase from 2022
— 98.4% of all establishments
– Total small establishment workers:
— 1,705,560 (54.3% of total private sector)
– Average weekly small establishment wages in 2023: $1,590
— $390 a week below state private sector average



Canva

#39. Nevada

Neon signs on a small street in Henderson, NV at night.

– Small establishments, 2023: 102,830
— 3.7% increase from 2022
— 98.2% of all establishments
– Total small establishment workers:
— 740,510 (55.6% of total private sector)
– Average weekly small establishment wages in 2023: $1,210
— $20 a week below state private sector average



Canva

#38. Louisiana

A streetcar in downtown New Orleans.

– Small establishments, 2023: 143,700
— 3.8% increase from 2022
— 98.5% of all establishments
– Total small establishment workers:
— 1,023,080 (64.3% of total private sector)
– Average weekly small establishment wages in 2023: $1,020
— $150 a week below state private sector average



Canva

#37. Florida

Businesses on a small street lined with palm trees.

– Small establishments, 2023: 852,840
— 4.0% increase from 2022
— 98.6% of all establishments
– Total small establishment workers:
— 5,051,490 (59.0% of total private sector)
– Average weekly small establishment wages in 2023: $1,260
— $80 a week below state private sector average



Canva

#36. Wisconsin

The Capitol in Madison.

– Small establishments, 2023: 188,200
— 4.0% increase from 2022
— 98.0% of all establishments
– Total small establishment workers:
— 1,452,070 (58.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,050
— $180 a week below state private sector average



Canva

#35. Texas

Downtown Austin.

– Small establishments, 2023: 788,810
— 4.0% increase from 2022
— 97.8% of all establishments
– Total small establishment workers:
— 6,374,040 (54.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,290
— $240 a week below state private sector average



Canva

#34. New Jersey

Atlantic City.

– Small establishments, 2023: 303,870
— 4.1% increase from 2022
— 98.3% of all establishments
– Total small establishment workers:
— 2,087,160 (58.3% of total private sector)
– Average weekly small establishment wages in 2023: $1,410
— $310 a week below state private sector average



Canva

#33. North Dakota

Downtown Fargo.

– Small establishments, 2023: 32,260
— 4.3% increase from 2022
— 98.7% of all establishments
– Total small establishment workers:
— 233,120 (68.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,150
— $100 a week below state private sector average



Canva

#32. South Dakota

Downtown Deadwood.

– Small establishments, 2023: 36,510
— 4.4% increase from 2022
— 98.8% of all establishments
– Total small establishment workers:
— 246,920 (67.6% of total private sector)
– Average weekly small establishment wages in 2023: $1,010
— $90 a week below state private sector average



Canva

#31. Utah

Downtown Ogden, UT at night.

– Small establishments, 2023: 126,230
— 4.5% increase from 2022
— 98.4% of all establishments
– Total small establishment workers:
— 856,000 (60.4% of total private sector)
– Average weekly small establishment wages in 2023: $1,120
— $140 a week below state private sector average



Canva

#30. Arkansas

Fayetteville, AR in Fall.

– Small establishments, 2023: 96,100
— 4.6% increase from 2022
— 98.5% of all establishments
– Total small establishment workers:
— 654,600 (60.9% of total private sector)
– Average weekly small establishment wages in 2023: $0,980
— $180 a week below state private sector average



Canva

#29. Maine

A small street in Belfast, ME.

– Small establishments, 2023: 59,830
— 4.7% increase from 2022
— 98.9% of all establishments
– Total small establishment workers:
— 352,420 (67.9% of total private sector)
– Average weekly small establishment wages in 2023: $1,100
— $100 a week below state private sector average



Canva

#28. Kansas

Downtown Topeka.

– Small establishments, 2023: 88,750
— 4.8% increase from 2022
— 98.1% of all establishments
– Total small establishment workers:
— 685,240 (59.0% of total private sector)
– Average weekly small establishment wages in 2023: $1,080
— $110 a week below state private sector average



Canva

#27. Ohio

An aerial view of Columbus.

– Small establishments, 2023: 315,070
— 5.0% increase from 2022
— 97.8% of all establishments
– Total small establishment workers:
— 2,643,430 (56.4% of total private sector)
– Average weekly small establishment wages in 2023: $1,090
— $180 a week below state private sector average



Canva

#26. Alaska

Businesses on the water.

– Small establishments, 2023: 22,420
— 5.0% increase from 2022
— 98.6% of all establishments
– Total small establishment workers:
— 149,880 (63.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,080
— $240 a week below state private sector average



Canva

#25. New Hampshire

Portsmouth, NH.

– Small establishments, 2023: 59,930
— 5.1% increase from 2022
— 98.7% of all establishments
– Total small establishment workers:
— 386,820 (65.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,450
— $60 a week below state private sector average



Canva

#24. Alabama

An aerial view of Montgomery.

– Small establishments, 2023: 145,220
— 5.4% increase from 2022
— 98.3% of all establishments
– Total small establishment workers:
— 1,040,560 (61.7% of total private sector)
– Average weekly small establishment wages in 2023: $1,050
— $100 a week below state private sector average



Canva

#23. Georgia

An aerial view of Atlanta.

– Small establishments, 2023: 362,270
— 5.6% increase from 2022
— 98.2% of all establishments
– Total small establishment workers:
— 2,256,480 (54.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,210
— $200 a week below state private sector average



Canva

#22. South Carolina

An aerial view of Charleston.

– Small establishments, 2023: 166,680
— 5.9% increase from 2022
— 98.4% of all establishments
– Total small establishment workers:
— 1,128,300 (60.6% of total private sector)
– Average weekly small establishment wages in 2023: $1,070
— $70 a week below state private sector average



Canva

#21. California

A small street in Palm Springs.

– Small establishments, 2023: 1,686,450
— 6.0% increase from 2022
— 98.8% of all establishments
– Total small establishment workers:
— 8,917,840 (58.5% of total private sector)
– Average weekly small establishment wages in 2023: $1,300
— $440 a week below state private sector average



Canva

#20. Missouri

An aerial view of Springfield, MO.

– Small establishments, 2023: 227,770
— 6.2% increase from 2022
— 98.6% of all establishments
– Total small establishment workers:
— 1,458,010 (59.7% of total private sector)
– Average weekly small establishment wages in 2023: $1,070
— $190 a week below state private sector average



Canva

#19. Rhode Island

Small stores in Rhode Island.

– Small establishments, 2023: 46,610
— 6.2% increase from 2022
— 98.9% of all establishments
– Total small establishment workers:
— 262,810 (63.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,170
— $140 a week below state private sector average



Canva

#18. Oklahoma

Broken Arrow, OK.

– Small establishments, 2023: 120,120
— 6.4% increase from 2022
— 98.5% of all establishments
– Total small establishment workers:
— 850,080 (63.9% of total private sector)
– Average weekly small establishment wages in 2023: $0,970
— $150 a week below state private sector average



Canva

#17. West Virginia

Harpers Ferry, WV.

– Small establishments, 2023: 53,310
— 6.9% increase from 2022
— 98.7% of all establishments
– Total small establishment workers:
— 360,760 (66.3% of total private sector)
– Average weekly small establishment wages in 2023: $0,960
— $110 a week below state private sector average



Canva

#16. Delaware

Wilmington, DE skyline.

– Small establishments, 2023: 41,540
— 6.9% increase from 2022
— 98.7% of all establishments
– Total small establishment workers:
— 217,470 (55.0% of total private sector)
– Average weekly small establishment wages in 2023: $1,190
— $280 a week below state private sector average



Canva

#15. Connecticut

A small street in Greenwich.

– Small establishments, 2023: 140,030
— 7.1% increase from 2022
— 98.6% of all establishments
– Total small establishment workers:
— 858,450 (60.4% of total private sector)
– Average weekly small establishment wages in 2023: $1,670
— $220 a week below state private sector average



Canva

#14. Minnesota

Duluth, MN.

– Small establishments, 2023: 197,620
— 7.3% increase from 2022
— 98.1% of all establishments
– Total small establishment workers:
— 1,328,920 (53.9% of total private sector)
– Average weekly small establishment wages in 2023: $1,220
— $270 a week below state private sector average



Canva

#13. Mississippi

Jackson, MS.

– Small establishments, 2023: 79,780
— 7.7% increase from 2022
— 98.4% of all establishments
– Total small establishment workers:
— 577,820 (62.4% of total private sector)
– Average weekly small establishment wages in 2023: $0,870
— $60 a week below state private sector average



Canva

#12. Kentucky

Lexington, KY.

– Small establishments, 2023: 140,900
— 7.9% increase from 2022
— 98.2% of all establishments
– Total small establishment workers:
— 936,050 (56.2% of total private sector)
– Average weekly small establishment wages in 2023: $1,030
— $130 a week below state private sector average



Canva

#11. North Carolina

Wilmington, NC.

– Small establishments, 2023: 350,010
— 8.2% increase from 2022
— 98.4% of all establishments
– Total small establishment workers:
— 2,397,490 (58.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,140
— $230 a week below state private sector average



Canva

#10. Vermont

Rutland, VT.

– Small establishments, 2023: 29,450
— 8.5% increase from 2022
— 99.0% of all establishments
– Total small establishment workers:
— 170,000 (67.3% of total private sector)
– Average weekly small establishment wages in 2023: $1,140
— $60 a week below state private sector average



Canva

#9. Arizona

Downtown Tucson, AZ.

– Small establishments, 2023: 208,240
— 8.5% increase from 2022
— 97.9% of all establishments
– Total small establishment workers:
— 1,347,950 (48.9% of total private sector)
– Average weekly small establishment wages in 2023: $1,220
— $120 a week below state private sector average



Canva

#8. Idaho

Downtown Boise, ID.

– Small establishments, 2023: 87,120
— 8.7% increase from 2022
— 99.0% of all establishments
– Total small establishment workers:
— 479,600 (69.0% of total private sector)
– Average weekly small establishment wages in 2023: $1,020
— $80 a week below state private sector average



Canva

#7. Tennessee

Memphis, TN.

– Small establishments, 2023: 204,360
— 8.8% increase from 2022
— 98.0% of all establishments
– Total small establishment workers:
— 1,548,890 (55.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,160
— $120 a week below state private sector average



Canva

#6. Hawai’i

Lahaina Harbor in Hawai‘i.

– Small establishments, 2023: 52,830
— 9.7% increase from 2022
— 98.8% of all establishments
– Total small establishment workers:
— 334,170 (65.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,100
— $80 a week below state private sector average



Canva

#5. Michigan

Downtown Ann Arbor, MI.

– Small establishments, 2023: 300,020
— 10.1% increase from 2022
— 98.1% of all establishments
– Total small establishment workers:
— 1,900,220 (50.8% of total private sector)
– Average weekly small establishment wages in 2023: $1,110
— $200 a week below state private sector average



Canva

#4. Colorado

Telluride, CO.

– Small establishments, 2023: 255,660
— 10.5% increase from 2022
— 98.7% of all establishments
– Total small establishment workers:
— 1,529,230 (63.7% of total private sector)
– Average weekly small establishment wages in 2023: $1,430
— $170 a week below state private sector average



Canva

#3. Oregon

An aerial view of downtown Portland, OR.

– Small establishments, 2023: 188,600
— 11.0% increase from 2022
— 98.9% of all establishments
– Total small establishment workers:
— 1,100,840 (65.3% of total private sector)
– Average weekly small establishment wages in 2023: $1,130
— $180 a week below state private sector average



Canva

#2. Virginia

Fredericksburg, VA.

– Small establishments, 2023: 337,210
— 11.5% increase from 2022
— 98.6% of all establishments
– Total small establishment workers:
— 1,989,420 (60.5% of total private sector)
– Average weekly small establishment wages in 2023: $1,270
— $230 a week below state private sector average



Canva

#1. Montana

Downtown Anaconda, MT.

– Small establishments, 2023: 61,460
— 12.1% increase from 2022
— 99.3% of all establishments
– Total small establishment workers:
— 317,570 (77.1% of total private sector)
– Average weekly small establishment wages in 2023: $1,000
— $80 a week below state private sector average

Story editing by Alizah Salario. Additional editing by Kelly Glass. Copy editing by Paris Close. Photo selection by Lacy Kerrick.

This story originally appeared on U.S. NAICS Codes and was produced and distributed in partnership with Stacker Studio.


Article Topic Follows: stacker-Money

Jump to comments ↓

Stacker

BE PART OF THE CONVERSATION

KVIA ABC 7 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content