7 Best States for Owning a Small Business
Huge retailers extend their presence all across the nation, but small businesses are the cornerstone of the US economy. In fact, nine out of 10 companies employ fewer than 20 employees. Twenty-five million one-person companies operate in cities all over America.
Office Depot researchers looked at Small Business Administration data and identified the states in which small businesses are making their owners the most money. Rhode Island came out on top for 2019, but the race is close.
Median income for self-employed: $56,474
Maryland has 594,124 small businesses, representing 99.5% of all companies in the state. These companies employ 1.1 million people, or 50.1% of the entire state workforce, with 37,604 net new jobs created in 2019.
Median income for self-employed: $60,106
Alaska is home to 73,354 small companies - 99.1% of all state businesses. These firms employ 53% of the private workforce in Alaska, or some 141,147 employees statewide.
Median income for self-employed: $60,641
California has 4 million small businesses that employ 7.1 million people, or 44.8% of the state workforce. Small companies in California represent 99.8% of all businesses, and they created 249,508 net new jobs in 2019.
4. New Jersey
Median income for self-employed: $61,313
There are 884,049 small businesses operating in New Jersey. These companies employ 1.8 million people, or 49.8% of the state workforce. Small businesses make up for 99.6% of all companies in the state, and they created 61,305 new net jobs in 2019.
Median income for self-employed: $63,883
Connecticut is home to 346,950 small businesses, which represent 99.8% of all companies operating in the state. They employ 48.9% of the state workforce. There are 750,457 small business employees in Connecticut, including the 26,960 new net jobs that were created in 2019.
Median income for self-employed: $65,084
Massachusetts has 669,224 active small businesses, which represents 99.5% of all companies across the state. They employ 1.5 million workers, or 45.8% of the state workforce. Massachusetts small businesses added 53,980 net new jobs during the past year.
1. Rhode Island
Median income for self-employed: $65,580
Judging by median income, Rhode Island is the best state for small business owners - by a whisker. There are 101,156 small businesses in Rhode Island - that’s 98.9% of all companies operating within the tiny state’s borders. They employ 229,974 workers. 2019 saw Rhode Island add 5,248 net new jobs in the small business sector, mostly in companies with fewer than 20 employees.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
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