The U.S. has always been regarded as the land of opportunity. Small businesses have been the backbone of the United States economy for over a hundred years. Most businesses that are started begin with someone’s ambition and passion, which then quickly turns into a fully-fledged small business.
Maryland is certainly no stranger to small businesses; in fact, Maryland, which is considered by many as a “State of Small Business” has one of the highest numbers of small businesses in the U.S. when compared with the state’s population. And with one of the highest growth percentages each year, it is hard to argue why.
The Old Line state is a serious contributor to the United State’s incredibly large economy. Over the past several years, Maryland’s support for small businesses has been evident in the state’s pro-business approach, and endless small business support. Which, in return, has aided and continues to support hundreds of thousands of small businesses, giving them the best chance to thrive and service in today’s economic scope.
Number of Small Businesses in Maryland
So, how many small businesses are there in Maryland? There are 604,176 small businesses in Maryland, according to the latest figures (2020) from the SBA.
It is not just people living in the state that are starting small businesses in Maryland; the state is also attractive to foreigners investing and starting businesses. There was a staggering 66,350 immigrant entrepreneurs in Maryland in 2018 that accounted for 23% of all self-employed Maryland residents.
The following bar graph shows the number of small businesses in Maryland in 2016, 2017, 2018, 2019, and 2020.
Of the 604,176 small businesses in Maryland 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 604,000+ small businesses in Maryland, it is relatively easy to register a business in Maryland.
Let’s take a deeper dive into the number of small businesses in Maryland by looking at the top industries, business owners, employees, and more!
Small Businesses Statistics in Maryland for 2020:
- Small businesses equate to over 99.5% of all businesses in Maryland.
- There are 1,115,541 small business employees in Maryland, which is 49.5% of the states’ employees.
- In 2019, Small Businesses in Maryland added 17,857 new jobs.
- Small businesses employing 20 to 99 employees created the most job gains.
- There are 116,369 self-employed minorities in Maryland demonstrating the diverse nature of the state.
- International trade is important for many businesses, and there are 5,727 small business exporters in Maryland.
- There are more professional, scientific, and technical services small businesses in Maryland than any other type – 96,310.
- Health care and social assistance firms make up the 2nd largest number of small businesses in Maryland – 62,546.
How Many Small Businesses in Maryland?
Over 604,000+ is a large number of small businesses to be registered in any one state! Compared to the rest of the U.S., the total number of small businesses in Maryland is 1.90% of all U.S. businesses. There are 31.7 million small businesses in the U.S.
The number of small businesses in Maryland has been growing over the past several years. In 2017 there were 579,173 small businesses, which increased to 581,717 in 2018, representing a 0.43% increase. In 2019 there were 594,124 small businesses in Maryland, 12,412 more than the state had in 2018, representing a 2.13% increase.
From 2019 to 2020, the number of Maryland small businesses rose again, to 604,176, which is evidence as to why Maryland’s economic strength has been building exponentially over the past several years.
Maryland has a lot to offer employers, employees, companies, and entrepreneurs, which is why many continue to flock to the state due to its impeccable business environment and ever-growing state economy, which in return has provided many opportunities for the small business owner.
With extremely close proximity to Washington D.C. and other large consumer markets, a “go local” approach to community-based businesses, constant community support, a large and skillful labor market, and a brilliant education system (47.7%), it comes as very little surprise to see so many small business owners choose Maryland as their state of business.
If you would like to download the full 2020 Small Business Profile report on Maryland from the U.S. Small Business Administration, Office of Advocacy, the Profile can be downloaded here.