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 evolves into a small business.
Minnesota is pretty familiar with small businesses, with a large number of small businesses being registered within the state. However, Minnesota is perhaps still one of the most underrated states for its business and economic stability of strength.
The Land of 10,000 Lakes makes a significant contribution to America’s booming economy, with the state’s GDP being the 17th largest in the U.S., which is impressive when comparatively looking at the size of the state. Not only is the state’s GDP high, but also many other economic factors come into play. For example, the state’s education system is world-class, in addition to this, the state has an incredible infrastructure and an abundance of business opportunities.
Number of Small Businesses in Minnesota
So, how many small businesses are there in Minnesota? There are 526,350 small businesses in Minnesota according to the latest figures (2020) from the SBA.
It is not just Americans and Minnesotans starting small businesses in Minnesota; the state also attracts international entrepreneurs and foreign families. There are 20,219 immigrant entrepreneurs in Minnesota that account for 7% of all self-employed Minnesota residents.
The following bar graph shows the number of small businesses in Minnesota in 2016, 2017, 2018, 2019, and 2020.
Of the 526,350 small businesses in Minnesota 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 526,000-plus small businesses in Minnesota, it is fairly easy to register a business in Minnesota.
To be a small business in Minnesota, you have to qualify as one. So, to operate as a small business in Minnesota, you must have a company with less than 500 employees.
Let’s take a deeper dive into the number of small businesses in Minnesota by looking at the top industries, small business owners, employees, and more!
Latest Small Businesses Statistics in Minnesota
- Small businesses equate to over 99.5% of all businesses in Minnesota.
- There are 1,259,012 small business employees in Minnesota, which is 46.9% of the states’ employees.
- In 2019, Small Businesses in Minnesota added 22,012 new jobs!
- Small businesses employing 20-99 employees created the most job gains!
- There are 30,846 self-employed minorities in Minnesota demonstrating the diversity in the state.
- International trade and exports in Minnesota are fairly strong, which is demonstrated by the 7,363 small business exporters.
- There are more professional, scientific & technical services small businesses in Minnesota than any other type – 76,133.
- Construction firms make up the 2nd largest number of small businesses in Minnesota – 55,304.
How Many Small Businesses in Minnesota?
Over 526,350 is a lot 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 Minnesota is 1.66% of all U.S. businesses. There are 31.7 million small businesses in the U.S.
The number of small businesses in Minnesota has been growing over the past several years. In 2017 there were 509,732 small businesses, which increased to 513,118 in 2018, representing a 0.66% increase. In 2019 there were 520,110 small businesses which were 6,992 more than the state had in 2018, representing a 1.36% increase.
From 2019 to 2020, the number of small businesses in Minnesota rose again, to 526,350. This is the largest increase in percentage terms over the past five years (1.99%) and demonstrates Minnesota’s strong economy.
Over recent years Minnesota has started to receive the attention it deserves in terms of what the state has to offer employers, employees, small businesses, and entrepreneurs.
The Land of 10,000 Lakes is the perfect place to begin your entrepreneurial journey for many reasons. An important factor is the multitude of business help for startups to already established businesses. There are several development centers, advisories, and professional small business support systems provided for free in Minnesota.
If you would like to download the latest 2020 Small Business Profile on Minnesota from the U.S. Small Business Administration, Office of Advocacy, the Profile can be downloaded here.