District of Columbia Tops Ranking for Small Business Employment in the U.S.

A recent study by Hastha Kalalu has revealed the District of Columbia leads the nation in small business employment, with nearly half (48%) of its workforce employed in small businesses. The study, which analyzed data from the U.S. Census and the Small Business Association, examined key metrics such as the number of small businesses per capita, employee share, exports, and ownership diversity.

The District of Columbia scored 69.4, the highest among all states and territories, boasting 1,113 small businesses per 10,000 residents. Nearly half of these businesses are women-owned (47%), and 43.3% are minority-owned, reflecting one of the most diverse business environments in the nation.

Wyoming ranked second with a score of 66.9, thanks to its 1,250 small businesses per 10,000 residents—the second highest rate in the study. Small businesses employ 64.6% of the state’s workforce, with real estate and rental being the most prominent industries.

Hawaii secured third place, scoring 66.26. The state has a high diversity rate, with 51.3% of small businesses being minority-owned and 46.4% owned by women. Almost half (48.7%) of its workforce is employed in small businesses, concentrated in professional, scientific, and technical services.

Montana and Louisiana ranked fourth and fifth, respectively. Montana has the highest share of small business employees at 67%, largely in the construction industry. Louisiana, meanwhile, stands out for its small business exports, which reached $25.3 billion in 2023, the second highest among the top 10.

Georgia, Maryland, and Florida follow in sixth, seventh, and eighth positions. Georgia leads in the number of small businesses, with 1,097 per 10,000 residents and annual exports totaling $11.2 billion. Maryland excels in diversity, with 44.6% of small businesses owned by women and 38.5% minority-owned. Florida, though ranked eighth, has the most small businesses per capita (1,363 per 10,000 residents) and the highest export value at $29.6 billion.

Oregon and Vermont round out the top 10. In Oregon, 54.1% of workers are employed in small businesses, and the state exports $5.5 billion annually. Vermont maintains high small business density (1,187 per 10,000 residents) with over half the workforce employed in smaller companies.

Small businesses play a vital role in the U.S. economy, making up over 99% of all enterprises and creating approximately 1.5 million new jobs annually. A spokesperson from Hastha Kalalu emphasized the significance of these enterprises, stating: “The state of small businesses often reflects the current economic environment. Supporting smaller businesses is always an investment into economic growth of the city or state.”

Image: Envato

This article, "District of Columbia Tops Ranking for Small Business Employment in the U.S." was first published on Small Business Trends