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
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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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.
