This story originally appeared on altLINE and was produced and distributed in partnership with Stacker Studio.
Washington 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 Washington 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 Washington 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.
#39. Mason County
- Total small business establishments: 1,062 (15.8 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 67,229
#38. Skamania County
- Total small business establishments: 200 (16.4 per 1,000 residents)
- Share of establishments that are small: 98.5%
- 2021 population: 12,207
#37. Pend Oreille County
- Total small business establishments: 239 (17.2 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 13,906
#36. Wahkiakum County
- Total small business establishments: 82 (17.9 per 1,000 residents)
- Share of establishments that are small: 96.5%
- 2021 population: 4,579
#34. Adams County
- Total small business establishments: 377 (18.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 20,640
#34. Garfield County
- Total small business establishments: 43 (18.3 per 1,000 residents)
- Share of establishments that are small: 95.6%
- 2021 population: 2,354
#33. Douglas County
- Total small business establishments: 808 (18.4 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 43,838
#32. Franklin County
- Total small business establishments: 1,830 (18.7 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 98,126
#31. Ferry County
- Total small business establishments: 137 (18.9 per 1,000 residents)
- Share of establishments that are small: 97.9%
- 2021 population: 7,267
#30. Yakima County
- Total small business establishments: 4,872 (19.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 256,647
#29. Stevens County
- Total small business establishments: 916 (19.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 47,553
#27. Asotin County
- Total small business establishments: 439 (19.5 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 22,468
#27. Whitman County
- Total small business establishments: 845 (19.5 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 43,238
#26. Grant County
- Total small business establishments: 1,972 (19.6 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 100,440
#25. Cowlitz County
- Total small business establishments: 2,238 (20.1 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 111,648
#24. Grays Harbor County
- Total small business establishments: 1,558 (20.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 76,787
#23. Pierce County
- Total small business establishments: 19,426 (21.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 927,199
#22. Island County
- Total small business establishments: 1,894 (21.6 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 87,557
#21. Thurston County
- Total small business establishments: 6,523 (21.9 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 298,078
#20. Kitsap County
- Total small business establishments: 6,161 (22.3 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 276,591
#19. Lewis County
- Total small business establishments: 1,942 (23.0 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 84,575
#18. Walla Walla County
- Total small business establishments: 1,445 (23.3 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 62,158
#17. Benton County
- Total small business establishments: 4,920 (23.4 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 210,585
#16. Clark County
- Total small business establishments: 11,978 (23.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 512,588
#15. Klickitat County
- Total small business establishments: 550 (23.7 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 23,178
#14. Snohomish County
- Total small business establishments: 19,892 (23.8 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 836,037
#13. Lincoln County
- Total small business establishments: 273 (24.2 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 11,277
#12. Pacific County
- Total small business establishments: 597 (24.9 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 23,971
#11. Spokane County
- Total small business establishments: 13,840 (25.4 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 545,498
#10. Clallam County
- Total small business establishments: 2,093 (26.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 78,442
#9. Okanogan County
- Total small business establishments: 1,159 (27.1 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 42,741
#8. Skagit County
- Total small business establishments: 3,578 (27.3 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 130,933
#7. Columbia County
- Total small business establishments: 117 (29.1 per 1,000 residents)
- Share of establishments that are small: 98.3%
- 2021 population: 4,015
#6. Jefferson County
- Total small business establishments: 1,016 (30.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 33,561
#5. Kittitas County
- Total small business establishments: 1,374 (30.8 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 44,688
#4. Whatcom County
- Total small business establishments: 6,987 (30.8 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 226,718
#3. King County
- Total small business establishments: 70,492 (31.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 2,253,038
#2. Chelan County
- Total small business establishments: 2,671 (33.5 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 79,775
#1. 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
