Canva In 2021, the IRS received a whopping 5.4 million business applications–an all-time high since the U.S. government began tracking this data in 2004. The year with the second-highest number of new business applications? 2020. Today, small businesses employ nearly half of the nation’s workers, according to a Chamber of Commerce report. It’s fair to say that the past few years have been banner years for small businesses, but what about regional differences? The business climate in a small town in Texas is likely not the same as a small town in Connecticut. The Chamber of Commerce report found that the Midwest was the most business-friendly region, thanks to the relatively low cost of living, well-educated workforce, and regulations lowering taxes and easing zoning restrictions for businesses. Of course, the East and West coasts also have plenty to offer, from California’s Silicon Valley and Hollywood studios to New York’s financial hub to Massachusetts’ prominence in the aerospace, defense, and information technology industries. A few states–including Delaware, Wyoming, and Nevada–even allow you to incorporate your business within their borders without ever setting foot there. For even more specific data, let’s take it a step further by analyzing counties. Are certain counties more friendly to small businesses than others? To pinpoint the areas nationwide where small businesses abound, altLINE used Census Bureau data to find the county in each state with the highest concentration of small businesses in 2021, calculated as small establishments per 1,000 residents. Small establishments are defined as those with fewer than 500 employees. Counties with fewer than 1,000 residents were excluded from the analysis, as well as counties for which the Census Bureau didn’t have population estimates. Population data for Connecticut counties were sourced via the Federal Reserve. Another important factor to consider: States where nonresidents are allowed to incorporate businesses will also have a higher ratio of small businesses to residents since not all small businesses are actually operated by people living in that state Taking a close look at the type of counties that topped the list in each state also reveals some interesting trends. World-class vacation destinations–like Nantucket, Massachusetts; Maui, Hawaii; Aspen, Colorado; Key West, Florida; and Sedona, Arizona–are well represented on this list, perhaps because tourists are looking to get a sense of how the locals live through small businesses like restaurants, bakeries, bars, and boutiques. While the counties on this list do include a few major cities like Manhattan, Atlanta, and Charleston, South Carolina, less populated counties with smaller towns are much more common. In fact, 19 of the counties on this list have a population of less than 25,000. Although most of the nation’s small businesses are located in major metropolitan areas, those that are located in rural areas tend to be more stable–possibly due to loyalty from local residents or the absence of competition from large corporations. Keep reading to discover the county in your state with the highest concentration of small businesses. It just might give you inspiration for your next endeavor. Alabama: Clarke County Canva – Total small business establishments: 593 (26.1 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 22,715 Alaska: Skagway Canva – Total small business establishments: 97 (84.9 per 1,000 residents) – Share of establishments that are small: 99.0% – 2021 population: 1,142 Arizona: Coconino County HildaWeges Photography // Shutterstock – Total small business establishments: 3,832 (26.8 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 142,780 Arkansas: Pulaski County Canva – Total small business establishments: 12,269 (30.8 per 1,000 residents) – Share of establishments that are small: 99.7% – 2021 population: 398,069 California: Mono County Canva – Total small business establishments: 658 (49.6 per 1,000 residents) – Share of establishments that are small: 99.4% – 2021 population: 13,261 Colorado: Pitkin County Canva – Total small business establishments: 1,700 (98.0 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 17,350 Connecticut: Fairfield County Canva – Total small business establishments: 26,860 (28.0 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 959,768 Delaware: New Castle County Real Window Creative // Shutterstock – Total small business establishments: 17,405 (30.4 per 1,000 residents) – Share of establishments that are small: 99.7% – 2021 population: 572,714 Florida: Monroe County Canva – Total small business establishments: 4,009 (48.7 per 1,000 residents) – Share of establishments that are small: 100.0% – 2021 population: 82,265 Georgia: Fulton County Brett Barnhill // Shutterstock – Total small business establishments: 40,442 (38.1 per 1,000 residents) – Share of establishments that are small: 99.6% – 2021 population: 1,062,531 Hawaii: Maui County pikappa51 // Shutterstock – Total small business establishments: 4,811 (29.2 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 164,817 Idaho: Blaine County Canva – Total small business establishments: 1,655 (66.8 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 24,767 Illinois: DuPage County Canva – Total small business establishments: 33,970 (36.7 per 1,000 residents) – Share of establishments that are small: 99.7% – 2021 population: 926,448 Indiana: Dubois County Roberto Galan // Shutterstock – Total small business establishments: 1,287 (29.5 per 1,000 residents) – Share of establishments that are small: 99.4% – 2021 population: 43,625 Iowa: Dickinson County Canva – Total small business establishments: 788 (44.1 per 1,000 residents) – Share of establishments that are small: 99.6% – 2021 population: 17,852 Kansas: Gove County Canva – Total small business establishments: 127 (46.4 per 1,000 residents) – Share of establishments that are small: 98.4% – 2021 population: 2,735 Kentucky: McCracken County Canva – Total small business establishments: 2,033 (30.1 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 67,612 Louisiana: Lafayette Parish Jacob Boomsma // Shutterstock – Total small business establishments: 8,664 (35.4 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 244,922 Maine: Knox County E.J.Johnson Photography // Shutterstock – Total small business establishments: 1,802 (43.9 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 41,074 Maryland: Worcester County Canva – Total small business establishments: 2,184 (40.9 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 53,370 Massachusetts: Nantucket Canva – Total small business establishments: 1,195 (82.4 per 1,000 residents) – Share of establishments that are small: 99.7% – 2021 population: 14,499 Michigan: Emmet County Canva – Total small business establishments: 1,524 (44.5 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 34,280 Minnesota: Cook County Canva – Total small business establishments: 287 (51.0 per 1,000 residents) – Share of establishments that are small: 99.3% – 2021 population: 5,623 Mississippi: Lee County Canva – Total small business establishments: 2,531 (30.5 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 83,043 Missouri: Atchison County Canva – Total small business establishments: 180 (34.4 per 1,000 residents) – Share of establishments that are small: 99.4% – 2021 population: 5,227 Montana: Gallatin County Canva – Total small business establishments: 6,471 (52.6 per 1,000 residents) – Share of establishments that are small: 100.0% – 2021 population: 123,051 Nebraska: Garfield County Danita Delimont // Shutterstock – Total small business establishments: 101 (55.1 per 1,000 residents) – Share of establishments that are small: 98.1% – 2021 population: 1,832 Nevada: Douglas County Gchapel // Shutterstock – Total small business establishments: 1,671 (33.4 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 49,969 New Hampshire: Carroll County NEKVT // Shutterstock – Total small business establishments: 1,879 (36.3 per 1,000 residents) – Share of establishments that are small: 100.0% – 2021 population: 51,725 New Jersey: Cape May County Jorge Moro // Shutterstock – Total small business establishments: 3,761 (39.3 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 95,768 New Mexico: Lincoln County Gestalt Imagery // Shutterstock – Total small business establishments: 678 (33.2 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 20,421 New York: Manhattan pisaphotography // Shutterstock – Total small business establishments: 95,564 (60.5 per 1,000 residents) – Share of establishments that are small: 99.5% – 2021 population: 1,578,801 North Carolina: Dare County MarkVanDykePhotography // Shutterstock – Total small business establishments: 1,999 (52.8 per 1,000 residents) – Share of establishments that are small: 100.0% – 2021 population: 37,889 North Dakota: Bowman County Logan Bush // Shutterstock – Total small business establishments: 152 (52.4 per 1,000 residents) – Share of establishments that are small: 99.3% – 2021 population: 2,902 Ohio: Holmes County Canva – Total small business establishments: 1,351 (30.5 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 44,374 Oklahoma: Woodward County Canva – Total small business establishments: 760 (37.6 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 20,216 Oregon: Wallowa County Canva – Total small business establishments: 362 (47.9 per 1,000 residents) – Share of establishments that are small: 99.5% – 2021 population: 7,554 Pennsylvania: Montgomery County Canva – Total small business establishments: 26,469 (30.6 per 1,000 residents) – Share of establishments that are small: 99.6% – 2021 population: 864,022 Rhode Island: Newport County Ramunas Bruzas // Shutterstock – Total small business establishments: 2,779 (32.4 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 85,662 South Carolina: Charleston County Canva – Total small business establishments: 14,818 (35.8 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 414,403 South Dakota: Sully County Michael J Magee // Shutterstock – Total small business establishments: 71 (48.3 per 1,000 residents) – Share of establishments that are small: 100.0% – 2021 population: 1,471 Tennessee: Williamson County Canva – Total small business establishments: 8,014 (31.3 per 1,000 residents) – Share of establishments that are small: 99.7% – 2021 population: 256,209 Texas: Gillespie County Canva – Total small business establishments: 1,122 (41.1 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 27,282 Utah: Summit County Canva – Total small business establishments: 2,702 (62.6 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 43,168 Vermont: Lamoille County Joseph Sohm // Shutterstock – Total small business establishments: 955 (36.5 per 1,000 residents) – Share of establishments that are small: 99.6% – 2021 population: 26,147 Virginia: Fairfax County Kristi Blokhin // Shutterstock – Total small business establishments: 1,994 (81.8 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 24,391 Washington: San Juan County Canva – Total small business establishments: 1,024 (55.0 per 1,000 residents) – Share of establishments that are small: 99.9% – 2021 population: 18,615 West Virginia: Ohio County Canva – Total small business establishments: 1,283 (30.6 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 41,878 Wisconsin: Door County Canva – Total small business establishments: 1,291 (42.5 per 1,000 residents) – Share of establishments that are small: 100.0% – 2021 population: 30,406 Wyoming: Teton County C Rolan // Shutterstock – Total small business establishments: 2,341 (99.1 per 1,000 residents) – Share of establishments that are small: 99.8% – 2021 population: 23,622 Data reporting by Paxtyn Merten. Story editing by Jeff Inglis. Copy editing by Tim Bruns. This story originally appeared on altLINE and was produced and distributed in partnership with Stacker Studio.
The small business sector is alive in these counties
