Small businesses are the backbone of the U.S. economy and have been for hundreds of years. Most businesses that are started begin with a dream, someone’s lifelong ambition to do something they are passionate about, which then turns into a small business.

Kansas is no stranger to small businesses, which is highlighted by the number of small businesses within the state compared with the state’s relatively small population.

The Sunflower State is considered to be a serious contributor to America’s economic powerhouse. Over the past several years, it has been consistently voted as one of the top states for business due to the government’s pro-business approach, proximity to huge consumer markets, low and competitive tax incentives, high quality of life, and a good education system, which produces many highly-skilled workers.

Number of Small Businesses in Kansas

So, how many small businesses are there in Kansas? There are 256,950 small businesses in Kansas, according to the latest figures (2020) from the SBA.

It is not just Americans and Kansans starting small businesses in Kansas; the state is a big attraction for international entrepreneurs and immigrants. There are 13,938 immigrant entrepreneurs in Kansas that account for 9% of all self-employed Kansas residents.

The following bar graph shows the number of small businesses in Kansas in 2016, 2017, 2018, 2019, and 2020.

How many small businesses in Kansas

Of the 256,950 small businesses in Kansas in 2020, there is a wide array of different enterprises from small, one-person sole proprietorships or LLCs to much larger businesses with several hundred employees. If you want to join the 256,000-plus small businesses in Kansas, it is fairly easy to register a business in Kansas.

To be a small business in Kansas, you have to qualify as one. So, to operate as a small business in Kansas, you must have a company with less than 500 employees.

Let’s take a deeper dive into the number of small businesses in Kansas by looking at the top industries, small business owners, employees, and more!

Latest Small Businesses Statistics in Kansas

  • Small businesses equate to over 99.1% of all businesses in Kansas.
  • There are 605,147 small business employees in Kansas, which is 50.5% of the states’ employees.
  • In 2019, Small Businesses in Kansas added 5,784 new jobs!
  • Small businesses employing 20-99 employees created the most job gains!
  • There are 20,356 self-employed minorities in Kansas demonstrating the diversity in the state.
  • International trade in Kansas is strong and there are 2,770 small business exporters.
  • There are more professional, scientific & technical services small businesses in Kansas than any other type – 31,208.
  • Retail Trade firms make up the 2nd largest number of small businesses in Kansas – 27,720.

Top 5 small business industries in Kansas

How Many Small Businesses in Kansas?

Over 256,000 is a lot of small businesses to be registered in any one state, especially when you consider the population of the Sunflower State. Compared to the rest of the U.S., the total number of small businesses in Kansas is 0.81% of all U.S. businesses. There are 31.7 million small businesses in the U.S.

The number of small businesses in Kansas has been growing at a steady rate over the past several years. In 2017 there were 250,021 small businesses, which increased to 251,985 in 2018, representing a 0.78% increase. In 2019 there were 254,297 small businesses which were 2,312 more than the state had in 2018, representing a 0.91% increase.

From 2019 to 2020, the number of small businesses in Kansas rose again, to 256,950. This is the second-largest increase in percentage terms over the past five years (1.04%) and demonstrates Kansas’ strong economy.

Kansas has an awful lot to offer employers and employees and companies and entrepreneurs from all over the world continue to flock to the state due to access to large consumer markets, brilliant infrastructure, a healthy import/export market, strong job growth, and world-class education system.

If you would like to download the latest 2020 Small Business Profile on Kansas from the U.S. Small Business Administration, Office of Advocacy, the Profile can be downloaded here.