This story originally appeared on altLINE and was produced and distributed in partnership with Stacker Studio.
Minnesota small businesses thrive 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 where small businesses abound, altLINE used Census Bureau data to find the counties in Minnesota 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.
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 are well represented on the lists of each state, 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 top counties in each state do include a few major cities, less populated counties with smaller towns are much more common. 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 counties in Minnesota with the highest concentration of small businesses, and see how it compares across 50 states. It just might give you inspiration for your next endeavor.
This story features data reporting by Paxtyn Merten, writing by Annalise Mantz, and is part of a series utilizing data automation across 50 states.
#50. Goodhue County
- Total small business establishments: 1,254 (26.1 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 48,018
#49. Pennington County
- Total small business establishments: 361 (26.2 per 1,000 residents)
- Share of establishments that are small: 98.1%
- 2021 population: 13,806
#48. Nobles County
- Total small business establishments: 577 (26.2 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 22,047
#47. Wabasha County
- Total small business establishments: 566 (26.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 21,514
#46. St. Louis County
- Total small business establishments: 5,294 (26.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 199,332
#44. Mille Lacs County
- Total small business establishments: 718 (26.7 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 26,892
#44. Norman County
- Total small business establishments: 172 (26.7 per 1,000 residents)
- Share of establishments that are small: 98.3%
- 2021 population: 6,442
#43. Roseau County
- Total small business establishments: 410 (26.9 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 15,260
#42. Beltrami County
- Total small business establishments: 1,248 (26.9 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 46,420
#41. Steele County
- Total small business establishments: 1,006 (26.9 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 37,409
#40. Becker County
- Total small business establishments: 952 (27.0 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 35,326
#39. Morrison County
- Total small business establishments: 919 (27.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 34,071
#38. Wadena County
- Total small business establishments: 383 (27.0 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 14,184
#37. Fillmore County
- Total small business establishments: 586 (27.5 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 21,303
#36. Stearns County
- Total small business establishments: 4,393 (27.6 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 159,144
#35. Hubbard County
- Total small business establishments: 601 (27.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 21,745
#34. Marshall County
- Total small business establishments: 249 (27.7 per 1,000 residents)
- Share of establishments that are small: 98.4%
- 2021 population: 8,979
#33. Blue Earth County
- Total small business establishments: 1,939 (28.0 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 69,361
#32. Cass County
- Total small business establishments: 867 (28.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 30,638
#31. Otter Tail County
- Total small business establishments: 1,723 (28.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 60,222
#30. Faribault County
- Total small business establishments: 399 (28.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 13,910
#29. Lake County
- Total small business establishments: 316 (28.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 11,009
#27. Cottonwood County
- Total small business establishments: 338 (29.2 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 11,578
#27. Lac qui Parle County
- Total small business establishments: 196 (29.2 per 1,000 residents)
- Share of establishments that are small: 98.0%
- 2021 population: 6,715
#26. Rock County
- Total small business establishments: 285 (29.5 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 9,674
#25. Jackson County
- Total small business establishments: 296 (29.6 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 10,015
#24. Martin County
- Total small business establishments: 601 (30.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 19,899
#23. Chippewa County
- Total small business establishments: 375 (30.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 12,390
#22. Brown County
- Total small business establishments: 800 (30.9 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 25,883
#21. Swift County
- Total small business establishments: 303 (31.0 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 9,781
#20. Koochiching County
- Total small business establishments: 371 (31.1 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 11,944
#19. Renville County
- Total small business establishments: 459 (31.4 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 14,628
#18. Stevens County
- Total small business establishments: 308 (31.7 per 1,000 residents)
- Share of establishments that are small: 98.4%
- 2021 population: 9,704
#17. Kandiyohi County
- Total small business establishments: 1,399 (31.9 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 43,865
#16. Murray County
- Total small business establishments: 260 (31.9 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 8,145
#15. Hennepin County
- Total small business establishments: 40,445 (31.9 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 1,266,736
#14. Lyon County
- Total small business establishments: 820 (32.5 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 25,267
#13. Pope County
- Total small business establishments: 373 (32.7 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 11,418
#12. Pipestone County
- Total small business establishments: 307 (32.8 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 9,352
#11. Crow Wing County
- Total small business establishments: 2,224 (33.0 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 67,345
#10. Redwood County
- Total small business establishments: 509 (33.1 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 15,397
#9. Grant County
- Total small business establishments: 207 (33.6 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 6,161
#8. Yellow Medicine County
- Total small business establishments: 320 (33.9 per 1,000 residents)
- Share of establishments that are small: 98.8%
- 2021 population: 9,446
#7. Big Stone County
- Total small business establishments: 176 (34.1 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 5,162
#6. Lincoln County
- Total small business establishments: 190 (34.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 5,563
#5. Kittson County
- Total small business establishments: 143 (34.4 per 1,000 residents)
- Share of establishments that are small: 98.6%
- 2021 population: 4,162
#4. Traverse County
- Total small business establishments: 113 (34.4 per 1,000 residents)
- Share of establishments that are small: 96.6%
- 2021 population: 3,287
#3. Douglas County
- Total small business establishments: 1,353 (34.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 39,305
#2. Lake of the Woods County
- Total small business establishments: 166 (43.4 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 3,821
#1. 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
