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1 / 50#50. Howard County
- Total small business establishments: 251 (26.4 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 9,500
Iowa 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 Iowa 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 Iowa 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.
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2 / 50#49. Jackson County
- Total small business establishments: 514 (26.5 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 19,397
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3 / 50#48. Fayette County
- Total small business establishments: 520 (26.9 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 19,309
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4 / 50#47. Plymouth County
- Total small business establishments: 693 (27.0 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 25,714
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5 / 50#46. Webster County
- Total small business establishments: 1,003 (27.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 37,178
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6 / 50#44. Allamakee County
- Total small business establishments: 378 (27.1 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 13,968
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7 / 50#44. Adair County
- Total small business establishments: 204 (27.1 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 7,538
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8 / 50#43. Polk County
- Total small business establishments: 13,694 (27.5 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 497,675
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9 / 50#42. Iowa County
- Total small business establishments: 460 (27.8 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 16,574
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10 / 50#41. Dubuque County
- Total small business establishments: 2,753 (27.9 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 98,815
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11 / 50#40. Des Moines County
- Total small business establishments: 1,086 (28.2 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 38,507
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12 / 50#39. Calhoun County
- Total small business establishments: 280 (28.3 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 9,884
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13 / 50#37. Greene County
- Total small business establishments: 249 (28.5 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 8,733
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14 / 50#37. Winnebago County
- Total small business establishments: 304 (28.5 per 1,000 residents)
- Share of establishments that are small: 98.7%
- 2021 population: 10,664
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15 / 50#36. Wright County
- Total small business establishments: 366 (28.6 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 12,811
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16 / 50#35. Guthrie County
- Total small business establishments: 304 (28.7 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 10,586
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17 / 50#34. Franklin County
- Total small business establishments: 287 (28.8 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 9,952
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18 / 50#33. Clayton County
- Total small business establishments: 495 (29.0 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 17,047
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19 / 50#32. Adams County
- Total small business establishments: 106 (29.1 per 1,000 residents)
- Share of establishments that are small: 97.2%
- 2021 population: 3,642
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20 / 50#31. Montgomery County
- Total small business establishments: 301 (29.2 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 10,325
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21 / 50#30. Fremont County
- Total small business establishments: 192 (29.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 6,575
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22 / 50#29. Cherokee County
- Total small business establishments: 338 (29.3 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 11,532
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23 / 50#28. Mitchell County
- Total small business establishments: 310 (29.4 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 10,563
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24 / 50#27. Hancock County
- Total small business establishments: 314 (29.4 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 10,685
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25 / 50#26. Pocahontas County
- Total small business establishments: 208 (29.5 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 7,057
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26 / 50#25. Ringgold County
- Total small business establishments: 137 (29.6 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 4,626
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27 / 50#24. Delaware County
- Total small business establishments: 520 (29.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 17,531
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28 / 50#23. Emmet County
- Total small business establishments: 277 (29.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 9,318
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29 / 50#22. Humboldt County
- Total small business establishments: 291 (30.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 9,637
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30 / 50#21. Winneshiek County
- Total small business establishments: 607 (30.5 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 19,915
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31 / 50#20. Hardin County
- Total small business establishments: 512 (30.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 16,719
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32 / 50#19. Washington County
- Total small business establishments: 690 (30.7 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 22,494
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33 / 50#18. Palo Alto County
- Total small business establishments: 275 (30.9 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 8,909
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34 / 50#17. Poweshiek County
- Total small business establishments: 585 (31.5 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 18,603
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35 / 50#16. Audubon County
- Total small business establishments: 179 (31.6 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 5,665
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36 / 50#15. Cerro Gordo County
- Total small business establishments: 1,356 (31.7 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 42,761
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37 / 50#14. Chickasaw County
- Total small business establishments: 378 (31.8 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 11,899
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38 / 50#13. Osceola County
- Total small business establishments: 197 (32.0 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 6,163
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39 / 50#12. Lyon County
- Total small business establishments: 389 (32.3 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 12,061
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40 / 50#11. Shelby County
- Total small business establishments: 381 (32.4 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 11,773
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41 / 50#10. Sac County
- Total small business establishments: 318 (32.6 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 9,745
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42 / 50#9. Cass County
- Total small business establishments: 450 (34.4 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 13,065
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43 / 50#8. Clay County
- Total small business establishments: 568 (34.6 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 16,428
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44 / 50#7. O'Brien County
- Total small business establishments: 487 (34.6 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 14,062
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45 / 50#6. Ida County
- Total small business establishments: 245 (35.1 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 6,974
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46 / 50#5. Sioux County
- Total small business establishments: 1,344 (37.3 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 35,991
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47 / 50#4. Kossuth County
- Total small business establishments: 554 (38.1 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 14,524
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48 / 50#3. Carroll County
- Total small business establishments: 835 (40.2 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 20,752
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49 / 50#2. Jefferson County
- Total small business establishments: 647 (41.1 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 15,762
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50 / 50#1. 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
