Indiana small businesses thrive in these counties

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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 Indiana 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 Indiana 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. Posey County

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#50. Posey County

- Total small business establishments: 497 (19.8 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 25,129

#49. LaPorte County

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#49. LaPorte County

- Total small business establishments: 2,228 (19.8 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 112,486

#47. Benton County

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#47. Benton County

- Total small business establishments: 176 (20.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 8,714

#47. Jefferson County

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#47. Jefferson County

- Total small business establishments: 669 (20.2 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 33,119

#46. Hendricks County

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#46. Hendricks County

- Total small business establishments: 3,635 (20.2 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 179,555

#45. Tipton County

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#45. Tipton County

- Total small business establishments: 314 (20.4 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 15,393

#44. Lake County

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#44. Lake County

- Total small business establishments: 10,251 (20.5 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 499,327

#43. Shelby County

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#43. Shelby County

- Total small business establishments: 927 (20.6 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 45,025

#42. Adams County

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#42. Adams County

- Total small business establishments: 743 (20.7 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 35,939

#41. Delaware County

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#41. Delaware County

- Total small business establishments: 2,319 (20.7 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 111,981

#40. Porter County

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#40. Porter County

- Total small business establishments: 3,633 (20.8 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 174,517

#39. Clark County

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#39. Clark County

- Total small business establishments: 2,574 (21.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 122,847

#38. Howard County

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#38. Howard County

- Total small business establishments: 1,754 (21.0 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 83,642

#36. Johnson County

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#36. Johnson County

- Total small business establishments: 3,449 (21.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 164,418

#36. Spencer County

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#36. Spencer County

- Total small business establishments: 417 (21.0 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 19,875

#34. Gibson County

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#34. Gibson County

- Total small business establishments: 696 (21.1 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 32,954

#34. Martin County

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#34. Martin County

- Total small business establishments: 207 (21.1 per 1,000 residents)
- Share of establishments that are small: 98.6%
- 2021 population: 9,799

#33. Jackson County

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#33. Jackson County

- Total small business establishments: 981 (21.2 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 46,285

#32. Wayne County

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#32. Wayne County

- Total small business establishments: 1,423 (21.4 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 66,490

#31. Monroe County

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#31. Monroe County

- Total small business establishments: 3,033 (21.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 140,135

#30. St. Joseph County

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#30. St. Joseph County

- Total small business establishments: 5,906 (21.7 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 272,341

#29. Fulton County

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#29. Fulton County

- Total small business establishments: 444 (21.8 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 20,380

#28. Montgomery County

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#28. Montgomery County

- Total small business establishments: 842 (22.1 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 38,061

#27. Ripley County

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#27. Ripley County

- Total small business establishments: 644 (22.2 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 29,017

#25. Brown County

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#25. Brown County

- Total small business establishments: 348 (22.4 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 15,573

#25. Vigo County

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#25. Vigo County

- Total small business establishments: 2,371 (22.4 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 106,084

#24. Jasper County

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#24. Jasper County

- Total small business establishments: 743 (22.4 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 33,113

#23. Bartholomew County

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#23. Bartholomew County

- Total small business establishments: 1,877 (22.7 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 82,730

#22. Wells County

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#22. Wells County

- Total small business establishments: 641 (22.8 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 28,177

#21. Rush County

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#21. Rush County

- Total small business establishments: 382 (22.9 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 16,699

#20. LaGrange County

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#20. LaGrange County

- Total small business establishments: 931 (23.0 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 40,538

#19. DeKalb County

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#19. DeKalb County

- Total small business establishments: 1,000 (23.1 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 43,369

#18. Floyd County

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#18. Floyd County

- Total small business establishments: 1,874 (23.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 80,606

#17. Knox County

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#17. Knox County

- Total small business establishments: 838 (23.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 35,964

#16. White County

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#16. White County

- Total small business establishments: 576 (23.4 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 24,662

#15. Huntington County

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#15. Huntington County

- Total small business establishments: 867 (23.6 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 36,792

#14. Wabash County

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#14. Wabash County

- Total small business establishments: 729 (23.6 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 30,897

#13. Marshall County

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#13. Marshall County

- Total small business establishments: 1,092 (23.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 46,175

#12. Boone County

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#12. Boone County

- Total small business establishments: 1,727 (23.7 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 73,006

#11. Allen County

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#11. Allen County

- Total small business establishments: 9,406 (24.2 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 389,112

#10. Elkhart County

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#10. Elkhart County

- Total small business establishments: 5,028 (24.3 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 207,066

#9. Decatur County

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#9. Decatur County

- Total small business establishments: 640 (24.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 26,322

#8. Marion County

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#8. Marion County

- Total small business establishments: 23,779 (24.5 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 971,647

#7. Kosciusko County

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#7. Kosciusko County

- Total small business establishments: 1,981 (24.7 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 80,323

#6. Pulaski County

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#6. Pulaski County

- Total small business establishments: 308 (24.9 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 12,370

#5. Hamilton County

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#5. Hamilton County

- Total small business establishments: 9,818 (27.5 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 357,330

#4. Daviess County

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#4. Daviess County

- Total small business establishments: 924 (27.7 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 33,381

#3. Steuben County

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#3. Steuben County

- Total small business establishments: 962 (27.8 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 34,666

#2. Vanderburgh County

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#2. Vanderburgh County

- Total small business establishments: 5,049 (28.0 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 180,267

#1. Dubois County

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#1. 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