Small Businesses Are Struggling in This Densely Populated U.S. State — and Thriving in These Others The U.S. is averaging 430,000 new business applications per month in 2024.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Small businesses employ nearly half of the American workforce and represent 43.5% of America's GDP.
- Location can significantly impact a small business's potential and pathway for growth.
Millions of Americans are becoming entrepreneurs: The U.S. is averaging 430,000 new business applications per month in 2024, 50% more than in 2019, according to the U.S. Department of the Treasury.
More than 40% of people followed their passion into entrepreneurship, while nearly 30% started their businesses to gain the flexibility and autonomy that comes with being their own boss, SCORE, a provider of business resources and mentorship, reported.
Small businesses employ nearly half of the American workforce and represent 43.5% of America's GDP, per the U.S. Chamber of Commerce, yet a staggering 50% of them will fail within five years of launch, according to the Bureau of Labor Statistics.
Location can play a significant role in a business's long-term survival and growth. So, which U.S. states are most attractive to emerging entrepreneurs?
Small business lending company OnDeck determined which states have the fastest-growing number of new small businesses by analyzing the latest available small business data from the U.S. Census (2020-2021).
Nearly every state showed small businesses growing to some extent, with two exceptions: West Virginia, which saw no growth year over year, and New York, which saw a .05% decline compared to the year prior.
And the state with the fastest-growing number of small businesses? That would be Idaho, where small businesses increased by 6.55% year over year.
See below for OnDeck's complete state-by-state analysis of where small businesses thrive across the U.S.:
Image Credit: Courtesy of OnDeck
