//New study ranks Florida with highest percentage of small businesses

New study ranks Florida with highest percentage of small businesses

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IN OTHER NEWS – A new study found that Florida has the highest percentage of small businesses in America, with GA ranking 16th.

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  • Florida has the highest percentage of small businesses, with 64% of all businesses having fewer than five registered employees. 
  • New York came second with 62.71% and Wyoming came third with 61.83%. 
  • Tennessee had the lowest percentage of small businesses with 49.19%. 

A new study has revealed that Florida has the highest percentage of small businesses out of all states in America. 

Business QR code generator Qrfy.com analyzed the latest public data from the US Census Bureau to find the percentage of registered businesses with fewer than five employees for each US state throughout 2021. These results were then ranked to determine which states had the highest percentage of small businesses compared to every other registered business.  

Florida ranks first with 64% of all businesses being classified as small businesses. Out of 616,961 total registered establishments, 394,849 establishments were found to have fewer than five employees. The annual payroll for all small businesses across Florida was found to be $32,799,642,000, with an average of $83,068.82 per business. 

New York came second with 62.71% of all businesses being classified as small businesses. Out of 535,758 total registered establishments, 335,950 establishments had fewer than five employees. The annual payroll for all small businesses across New York was $33,618,837,000, with an average of $100,070.95 per small business. 

Wyoming came third with 61.83% of all businesses being classified as small businesses. Out of 22,474 total registered establishments,13,896 establishments had fewer than five employees. The annual payroll for all small businesses across Wyoming was $1,286,032,000, with an average of $92,546.91 per small business. 

Montana ranked fourth with 61.54% of all businesses being classified as small businesses. Out of 40,716 total registered establishments, 25,055 establishments had fewer than five employees. The annual payroll for all small businesses across Montana was $1,935,268,000, with an average of $77,240.79 per small business. 

Colorado came fifth with 60.93% of all businesses being classified as small businesses. Out of 179,827 total registered establishments, 109,570 establishments had fewer than five employees. The annual payroll for all small businesses across Colorado was $10,665,582,000, with an average of $97,340.34 per small business. 

Other states that featured in the top ten were Utah, California, Idaho, Maine, and Alaska. 

Tennessee ranked last in the study, with only 49.19% of all businesses having fewer than five registered employees. Out of 144,457 total registered establishments, 71,055 establishments had fewer than five employees. 

Marc Porcar, CEO of Qrfy.com commented on the findings: 

“It is interesting to see the extent to which smaller businesses contribute to the overall number of businesses in each state, especially when they are competing with far larger companies in the same industries. These figures are also from the end of the COVID-19 lockdown period, which may have influenced people to start their own small businesses whilst working from home.  

“A possible explanation behind the top ten results could be the higher living costs of states like Florida and New York, which may encourage people to be more entrepreneurial in order to make a living. Hopefully, we will see more public figures released for subsequent years to see whether these trends continue at all.” 

States ranked by percentage of small businesses in 2021 (fewer than five employees)   

Rank State Total number of establishments (2021) Number of establishments with fewer than five employees (2021) Percentage of small businesses (2021) 
1. Florida 616,961 394,849 64.00% 
2. New York 535,758 335,950 62.71% 
3. Wyoming 22,474 13,896 61.83% 
4. Montana 40,716 25,055 61.54% 
5. Colorado 179,827 109,570 60.93% 
6. Utah 90,301 53,965 59.76% 
7. California 998,582 595,457 59.63% 
8. Idaho 54,864 32,557 59.34% 
9. Maine 42,519 25,023 58.85% 
10. Alaska 21,641 12,687 58.62% 
11. Delaware 28,553 16,716 58.54% 
12. Vermont 20,696 12,085 58.39% 
13. New Jersey 233,950 136,266 58.25% 
14. Illinois 320,795 186,728 58.21% 
15. Washington 198,854 115,218 57.94% 
16. Georgia 253,729 146,483 57.73% 
17. Rhode Island 28,989 16,466 56.80% 
18. South Dakota 27,951 15,790 56.49% 
19. Hawaii 32,488 18,331 56.42% 
20. Oregon 120,704 67,985 56.32% 
21. Arizona 154,759 87,159 56.32% 
22. Nevada 73,505 41,351 56.26% 
23. Massachusetts 180,088 99,962 55.51% 
24. Nebraska 55,542 30,783 55.42% 
25. Minnesota 152,836 84,180 55.08% 
26. Maryland 141,217 77,650 54.99% 
27. Missouri 152,286 83,556 54.87% 
28. Oklahoma 94,751 51,953 54.83% 
29. North Carolina 247,458 135,638 54.81% 
30. Virginia 206,271 112,432 54.51% 
31. Iowa 82,997 45,163 54.42% 
32. Texas 638,183 345,721 54.17% 
33. South Carolina 116,896 63,150 54.02% 
34. Kansas 75,057 40,345 53.75% 
35. New Hampshire 38,825 20,849 53.70% 
36. Connecticut 88,509 47,512 53.68% 
37. New Mexico 43,953 23,576 53.64% 
38. Arkansas 68,572 36,572 53.33% 
39. North Dakota 24,816 13,223 53.28% 
40. Michigan 224,676 119,676 53.27% 
41. Pennsylvania 304,633 160,889 52.81% 
42. Louisiana 107,464 55,776 51.90% 
43. Mississippi 59,805 30,761 51.44% 
44. Wisconsin 142,496 73,160 51.34% 
45. Kentucky 92,130 46,913 50.92% 
46. Alabama 103,514 52705 50.92% 
47. Indiana 150,912 76,611 50.77% 
48. Ohio 252,241 124,771 49.46% 
49. West Virginia 35,316 17,434 49.37% 
50. Tennessee 144,457 71,055 49.19%