Top 10 U.S. States for Small Business Growth

Small businesses are a significant driver of the U.S. economy. According to the Small Business Administration (SBA) there are over 28 million small businesses in the U.S., employing over 56 million workers. Of course, the number and health of small businesses varies by state. How does your state's small business growth stack up? 

The annual SBA report provides insight to small business growth on a state level. The new report provides a snapshot of small business activity in each state, including information on the number of firms, employment, demographics, and other small business growth information.  

To help understand small business growth by state, let’s look at a few different top 10 lists.

Top 10 - Highest Number of Small Businesses

According to the SBA report, these ten states have the highest number of small businesses in the U.S.

1. California 3,622,304

2. Texas 2,412,717

3. Florida 2,180,556

4. New York 2,057,959

5. Illinois 1,169,961

6. Pennsylvania 999,591

7. Georgia 962,085

8. Ohio 926,977

9. Michigan 856,682

10. North Carolina 833,107

Top 10 - Share of Small Business Employment

According to the SBA report, these ten states have the largest share of small business employment.

1. Montana 67.6%

2. Wyoming 62.3%

3. South Dakota 59.2%

4. Vermont 58.9%

5. North Dakota 58.6%

6. Maine 57.3%

7. Idaho 56.3%

8. Oregon 55.5%

9. Rhode Island 55.0%

10. New Mexico 54.6%

Top 10 - Small Businesses Surviving 2013 to 2014

If you’re in one of these ten states, your business had a higher percentage of surviving from 2013 to 2014.

1. Washington 87.4%

2. Delaware 84.7%

3. Wisconsin 83.1%

4. Connecticut 82.1%

5. Utah 81.8%

6. South Carolina 81.5% (tie)

7. Massachusetts 81.5% (tie)

8. New York 80.7%

9. Texas 80.6% (tie)

10. South Dakota 80.6 (tie)

Top 10 - Private Sector Employment Growth

These states represent the highest percentage of private sector growth from 2013 to 2014.

1. North Dakota 5.8%

2. Texas 4.2%

3. Utah 3.7%

4. Delaware 3.2%

5. Florida 3.1% (tie)

6. Nevada 3.1% (tie)

7. North Carolina 3.0% (tie)

8. Arizona 3.0% (tie)

9. Georgia 2.9%

10. Tennessee 2.8 %

Top 10 - Number of Businesses Opened

According to SBA, these ten states had the most number of new businesses opening in the first quarter of 2014.

1. California 62,938

2. Florida 31,578

3. New York 25,698

4. Texas 25,324

5. Illinois 17,196

6. Georgia 13,200

7. Pennsylvania 12,975

8. Michigan 11,150

9. Massachusetts 10,627

10. North Carolina 10,286

Conclusion

Small business success and growth depends on a lot of factors - with location being one of them. These top ten lists provide insight on business growth by state.

How does your state's small business growth stack up?