The United States is regarded as the land of opportunity and small businesses have been the backbone of the thriving economy for many years. Most businesses that are started begin with a passion, someone’s lifelong ambition, which then turns into a small business.
Indiana certainly is no stranger to small businesses, being referred to by many business outlets as “the state of small businesses”. It is hard to argue with that when you consider all of the pro-business incentives and advantages for start-ups and existing small businesses. If you are an aspiring small business owner, Indiana might just be the perfect state for you!
The Hoosier State makes a considerable contribution to America’s incredibly strong economy, and it has consistently been on an upward trajectory too. This is due to the government’s pro-business approach, especially when it comes to small businesses, with a strong labor market, low cost of living, manageable business taxes, solid infrastructure, and quality of life like no other.
Number of Small Businesses in Indiana
So, how many small businesses are there in Indiana? There are 521,656 small businesses in Indiana, according to the latest figures (2020) from the SBA.
It is not just Americans and Hoosiers that set up shop in Indiana; the state is popular with international and foreign entrepreneurs too. There are 18,583 immigrant entrepreneurs in Indiana that account for 7% of all self-employed Indiana residents.
The following bar graph shows the number of small businesses in Indiana in 2016, 2017, 2018, 2019, and 2020.
Of the 521,656 small businesses in Indiana in 2020, there is a wide variety of different enterprises from small, one-person sole proprietorships or LLCs, local businesses serving specific areas and towns, and much larger businesses with several hundred employees. If you want to join the 521,000+ small businesses in Indiana, it is fairly easy to register a business in Indiana.
To be a small business owner in Indiana, you have to qualify as one. So, to operate as an Indiana small business, you must have a company with less than 500 employees.
Let’s take a deeper dive into the number of small businesses in Indiana by looking at the top industries, business owners, local businesses, employees, and more!
Small Businesses Statistics in Indiana for 2020
- Small businesses equate to over 99.4% of all businesses in Indiana.
- There are 1,232,838 small business employees in Indiana, 44.4% of the states’ employees.
- In 2019, Small Businesses in Indiana added 36,485 new jobs!
- Small businesses employing 20-99 employees created the most job gains!
- There are 38,852 self-employed minorities in Indiana, demonstrating the diversity in the state.
- Trade is an important part of business in Indiana, and there are 7,167 small business exporters in the state.
- There are more construction firms in Indiana than any other type – 59,319.
- Professional, scientific, and technical services firms make up the 2nd largest group of small businesses in Indiana – 55,326.
How Many Small Businesses in Indiana?
Having over 521,000 small businesses in Indiana is a substantial amount in relation to the overall size of the state. When you look at the Hoosier State’s economy and influence on business, you can understand why so many entrepreneurs and small business owners have decided to call Indiana their home and place of business.
Compared to the rest of the U.S., the total number of small businesses in Indiana is 1.64% of all U.S. businesses. There are 31.7 million small businesses in the U.S.
The number of small businesses in Indiana has been growing over the past several years and here are the statistics.
- In 2017 there were 504,377 small businesses, which increased to 508,924 in 2018 (a 0.9% increase).
- In 2019 there were 512,348 small businesses in Indiana, 3,424 more than the state had in 2018 (a 0.67% increase).
- From 2019 to 2020, the number of small businesses in Indiana rose again, to 521,656 (a 1.81% increase).
- These increases show why Indiana has the 18th largest economy in the U.S.!
Indiana has an incredible amount to offer employers, employees, companies, and entrepreneurs from all over the world.
The state has small business development centers, economic development councils, an abundance of business resource centers, and as a small business owner, you have access to a large consumer market.
As an entrepreneur, you can take advantage of international access by land and air, world-class infrastructure, a healthy import/export market, a strong population and job growth, and a decent education system, which provides an abundance of skilled workers.
If you would like to download the latest 2020 Small Business Profile on Indiana from the U.S. Small Business Administration, Office of Advocacy, the full Profile can be downloaded here.