The U.S. has always been regarded as the land of opportunity. Small businesses have been the backbone of the United States economy for decades. Most businesses that are started begin with someone’s ambition and passion, which then quickly turns into a fully-fledged small business.
Connecticut is definitely no stranger to small businesses; in fact, when people analyze the business climate in Connecticut, it is often referred to as the “state of small business”. This is highlighted by the number of small businesses currently thriving within the state, and the amount of them has been increasing consistently each year.
The Constitution State is a huge contributor to the United States’ massive economy. Over the past several years Connecticut’s support for small businesses has been evident in the state’s pro-business approach, which in return has helped and continues to support thousands of businesses, allowing them to thrive in the current climate. This is because CT has access to a multitude of different small business resources and support networks, such as development centers.
Number of Small Businesses in Connecticut
So, how many small businesses are there in Connecticut? There are 350,376 small businesses in Connecticut, according to the latest figures (2020) from the SBA.
It is not just people living in the state that are starting small businesses in Connecticut; the state is also attractive to foreigners investing and starting businesses. There were 47,440 immigrant entrepreneurs in Connecticut in 2018 that accounted for 24% of all self-employed Connecticut residents.
The following bar graph shows the number of small businesses in Connecticut in 2016, 2017, 2018, 2019, and 2020.
Of the 350,376 small businesses in Connecticut in 2020, there is a wide array of different enterprises from small, one-person sole proprietorships or LLCs to much larger businesses with a hundred or more employees. If you want to join the 350,000+ small businesses in Connecticut, it is fairly easy to register a business in Connecticut.
Let’s take a deeper dive into the number of small businesses in Connecticut by looking at the top industries, business owners, employees, and more!
Small Businesses in Connecticut 2020 overview
- Small businesses equate to over 99.4% of all businesses in Connecticut.
- There are 745,085 small business employees in Connecticut, which is 48.5% of the states’ employees.
- In 2019, Small Businesses in Connecticut added 972 new jobs.
- Small businesses employing 20 to 99 employees created the most job gains.
- There are 43,867 self-employed minorities in Connecticut demonstrating diversity.
- Trade is important for many businesses, and there are 5,057 small business exporters in Connecticut.
- There are more professional, scientific, and technical services small businesses in Connecticut than any other type – 54,590.
- Real estate and rental leasing firms make up the 2nd largest number of small businesses in Connecticut – 39,513.
How Many Small Businesses in Connecticut?
Over 350,000+ is a lot of small businesses to be registered in any one state, especially since it is the 29th most populous one! Compared to the rest of the U.S., the total number of small businesses in Connecticut is 1.1% of all U.S. businesses. There are 31.7 million small businesses in the U.S.
The number of small businesses in Connecticut has been growing over the past several years. In 2017 there were 339,231 small businesses, which increased to 342,443 in 2018, representing a 0.94% increase. In 2019 there were 346,950 small businesses in Connecticut, 4,507 more than the state had in 2018, representing a 1.31% increase.
From 2019 to 2020, the number of small businesses in Connecticut rose again, to 350,376, which is evidence as to why Connecticut’s economic strength has been building exponentially over the past several years.
We hope this information is useful for those interested in starting a company in Connecticut, marketing your company to other small businesses in the Constitution State, or expanding your business in the state.
Connecticut has much to offer employers, employees, companies, and entrepreneurs, which is why many continue to gravitate to the state due to its consistently improving business environment, which in return has provided a multitude of incredible opportunities for many.
With access to large consumer markets, a respectful “go local” approach to community-driven businesses, the highest per capita income, many local small business resources readily available for everybody, a healthy labor market, and a brilliant college education system, it is clear to see why.
If you would like to download the latest 2020 Small Business Profile on Connecticut from the U.S. Small Business Administration, Office of Advocacy, the Profile can be downloaded here.