Ohio is a state that is sometimes overlooked as being a solid contributor to the United States’ booming economy, and, while not being the largest economic powerhouse it certainly has a large influence in the nations’ recent successes. Companies both large and small tend to thrive within Ohio’s economic climate.
The state of Ohio and the Ohio Secretary of State provides a wide range of incentives, grant programs, access to loans, and State Tax Incentives to small and medium-sized businesses.
If you register a new company in Ohio, you can benefit from several programs that are offered that include Ohio Business Getaway, an Office of Government Contracting, and an Ohio Development Services Agency Business Grants, Loans, and Tax Credits, to name a few. Links to these resources are at the bottom of the page.
Ohio has produced some awesome entrepreneurs over the years, who have influenced the state’s economy in an abundance of brilliant ways, and the state continues to produce them on a regular basis.
The Buckeye State is centrally locked with easy access to some huge states with massive consumer markets, it will come as no surprise to see why there are so many businesses small and large currently thriving in the state.
Ohio-based businesses enjoy no corporate income taxes, with the addition of extremely low income tax rates, which make the state one of the most business-friendly in the U.S.
The state also has a greater share of small businesses than the national average. More than 99% of businesses in Ohio are small businesses. Many other states rely on much larger businesses with 500 or more employees to make up a large chunk of their employees, which demonstrates why Ohio is a very pro-small business state.
Additional Economic Facts about Ohio
- Ohio’s GDP is over $695 billion – the 7th largest in the U.S.
- The state’s GDP growth rate between 2014-2019 was 1.5%.
- Ohio’s GDP per capita was just over $52,000 in 2019.
- Ohio has a low and progressive income tax rate that ranges between 0% – 4.979%.
- The base sales tax rate in Ohio is 5.75%.
- Ohio ranks 7th for business opportunities (US News & World Report).
- The Ohio minimum wage is $8.80.
- Ohio’s economic activity ranks 25th in the nation (WalletHub).
- The average house price in Ohio is $161,507.
- Forbes has ranked Columbus number 10 out of all US cities for rising startups!
- Columbus has also been considered as the No. 1 US city for tech jobs.
- There is no Corporate Income Tax in Ohio but the top marginal rate for individuals is 4.997% on income over $208,500.
- 38% of the state is college-educated.
- Ohio is the most affordable state to live in according to the US News & World Report.
- There are 27 Fortune 500 companies in Ohio.
- Ohio’s employment growth rate has been steady from 2014-2019, with a 1.2% rate.
- There are 37 different airports in Ohio.
Ohio is still home to many larger international companies and franchises, which in return contribute vastly to the state’s impressive economic strength.
What is the Largest Employer in Ohio?
There are several large employers in Ohio and they include the following:
- Kroger
- Macy’s
- Watson’s
- P&G
- National Machinery
- Goodyear Tire and Rubber Company
- L Brands
- First Student
- Parker Hannifin
Many people decide on calling Ohio their new home, and subsequent place of work for a plethora of valid reasons, with some contributing factors being affordability and economic/business opportunity.
Typical facts about Ohio include stunning forests, attractive landscapes and towns, unique and diverse cultures, big cities, and of course, beavers, which makes Ohio such a popular place to live in the United States.
What are Three of Ohio’s Biggest Resources?
Ohio has an overabundance of natural resources that have been the building blocks for the state’s stable economy. Stemming from the 1800s when European settlers first came to the Buckeye State.
The top three natural resources that have had the biggest economic impact are Coal, Oil, and Natural Gas. Rock salt is also a huge resource within Ohio, there is so much in fact, that the state’s supply of rock salt could suffice the entire nation for thousands of years.
- Coal: As it currently stands, there are around 90 coal-mining operations that are in action within 15 of Ohio’s eastern counties. These operations are producing around $626 million on an annual basis.
- Oil: Since the inception of oil production in Ohio, over 1.1 billion barrels of oil have been produced! Recent data has suggested that more than 700 wells are annually drilled in 47 Ohio counties, which are predominantly located in the eastern region of the state. The annual value of oil in Ohio is around $300 million.
- Natural Gas: Natural gas production has seen over 8 billion MCF (thousand cubic feet) being produced! Natural gas was first discovered in northwestern Ohio and has since being discovered has raised almost $700 million for the state.
Business Facts About Ohio
With the many opportunities presented to aspiring entrepreneurs, business owners, and employees, Ohio is one of the best places for business, which is evident in the state’s pro-business approach, and economic strength.
Despite already having one of the more stable U.S. economies, Ohio’s economy is continuously growing with small businesses driving this growth. Small businesses in Ohio account for over 3% of all U.S. small businesses.
These small businesses (and large businesses) thrive within the state due to access to business resources, capital investments, free advisories, and the state’s access to large consumer markets.
What are Ohio’s Economic Regions?
There are many regions within the Buckeye state that contribute to Ohio’s economy in a variety of different ways. For example, the Maumee Valley region, situated in the northwest of the state relies heavily on agriculture, with the largest city within the region, Lima, having a large industrial and market center.
The second most populous city within the state, Cleveland, is considered to be the industrial, financial, and cultural hub of the Buckeye state. Other cities such as Canton, Akron, and Youngstown are more recognized as manufacturing hotspots. All of the regions within Ohio have a significant impact on the state’s ever-growing economy, with a diverse range of industries booming throughout the state.
Here Are Some Business Facts About Ohio:
- Ohio is home to over 982,000 small businesses!
- Small businesses make up over 99% of Ohio businesses.
- Ohio is home to 2.2 million small business employees.
- More than 45% of Ohio employees work for small businesses.
- Columbus, Ohio has ranked as the 11th fastest growing city and 6th for corporate HQ leaders! (BusinessFacilities.com).
- Columbus also has the number 1 real estate market in the US.
- Community is a huge deal for businesses in Ohio, with a helpful and respectable “go local” program helping small businesses grow and thrive within the Beaver State.
- The Ohio-based retail company Kroger has over 433,000 employees!
What is Ohio’s Major Industries?
The largest small business industry in Ohio in terms of employment share is the health care and social assistance industry, with the largest industry in terms of the number of firms being professional, scientific, and technical services (119,922 total small business firms). The largest industry in Ohio in terms of both employment share and number of firms is manufacturing.
Resources on Ohio’s economy and support you can get
Business and economic support programs:
- Ohio Development Services Agency Business Grants, Loans, and Tax Credits
- Ohio Capital Access Program
- The Collateral Enhancement Program
Additional resources:
