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Top Cities and Regions Fueling Small Business Success in America
Top Cities and Regions Fueling Small Business Success in America
By Joseph Provence, a news contributor who writes about technology, small business, SEO, and e-commerce.
Jan 8, 2025, 8:53 AM MST
Small businesses are the backbone of the U.S. economy—and their influence continues to grow.
Since 2019, companies with fewer than 500 employees have been responsible for more than 70% of new jobs, according to the U.S. Treasury. These small businesses now account for 51% of private-sector employment. Furthermore, 2024 has seen a 50% increase in new business applications per month compared to 2019. The entrepreneurial landscape is becoming increasingly diverse, with more women, Black, Asian, and Hispanic entrepreneurs leading the charge than ever before.
"Every small business represents a vote of confidence in our economy," said President Joe Biden, highlighting the role of the Biden-Harris Administration’s Investing in America Agenda in fostering this wave of entrepreneurship.
However, not all parts of the country are experiencing this entrepreneurial surge equally, as shown by a recent study from OnDeck. This analysis, which examined U.S. Census data on small businesses, identified the states, counties, and metropolitan areas with the fastest growth in businesses with fewer than 500 employees.
Key Findings
Key Findings
Idaho leads all states with a 6.55% year-over-year increase in small businesses.
LaGrange, Georgia, tops the metropolitan areas with a 19.85% growth rate.
Sheridan County, Wyoming, saw the most rapid growth among counties, with a 21.51% increase.
Idaho: The State with the Strongest Small Business Growth
Idaho has emerged as the nation’s leader in small business growth, adding 2,776 new small businesses between 2020 and 2021—a 6.55% increase. Over the past 25 years, small business employment in Idaho has grown by 48.7%, outpacing national trends, according to the U.S. Small Business Administration.
The state offers a unique combination of low labor costs and a moderate job market, creating a fertile environment for small businesses. This balance helps businesses thrive without facing the recruitment challenges common in other states.
In contrast, West Virginia reported no growth, and New York saw a slight decline (-0.05%) in its small business numbers, impacted by a shrinking population and limited workforce availability. "We need to prioritize affordability and ease of doing business to keep New York’s Main Street vibrant," said Ashley Ranslow, New York Director of the National Federation of Independent Business (NFIB).
Florida’s Metropolitan Areas Shine
Florida’s Metropolitan Areas Shine
Among large metropolitan areas, Orlando-Kissimmee-Sanford, Florida, experienced a 6.20% rise in small businesses, driven by incentive programs like Orlando Main Streets. Since its inception in 2008, this initiative has helped create 11,000 jobs and launch over 1,800 businesses.
Medium-sized metros in Florida are also thriving, with Lakeland-Winter Haven reporting a 6.59% increase. Its population growth, particularly among 35–45-year-olds, has spurred demand for service-based businesses like childcare and hospitality.
For smaller metros, LaGrange, Georgia, stands out with a 19.85% surge. The city benefits from the presence of the Georgia International Business Park, which has attracted businesses of all sizes and fueled the growth of local industries.
Sheridan County, Wyoming: A Hotspot for Small Business Growth
Sheridan County, Wyoming: A Hotspot for Small Business Growth
Sheridan County has seen a remarkable 21.51% increase in small businesses. The discovery of rare earth elements in its coal mines and workforce development programs at Sheridan College have contributed to this boom. However, rapid growth has also sparked concerns about preserving the county's agricultural character and infrastructure.
Despite overall small business decline in New York State, Delaware County bucked the trend with a 4.84% increase, thanks to initiatives like the *Equitable Entrepreneurial Ecosystem for Business Growth (E3)* program.
The Road Ahead
The Road Ahead
A thriving small business sector is vital for a healthy economy, and federal leaders aim to make entrepreneurship more accessible. President Trump has pledged to reduce red tape and enhance tax benefits for small businesses, aiming to promote more balanced growth nationwide.
Whether these efforts will bridge regional disparities in small business development remains to be seen.
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