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Small business statistics, broken down state-by-state, can help you understand where your own small business fits in. Sure, zoomed out business statistics are nice to understand the much bigger picture, but slicing and dicing the numbers by state can help you come across insights that might be lost through too-broad numbers. Namely, looking at small business statistics by state can help you understand if your place of business is helping or hurting your enterprise.
We’ve constructed an interactive map that will help you see small business statistics of your state and your region—and how you compare to other small businesses in your area. Plus, we’ve compiled a list of the most surprising numbers we found when we broke down small business statistics state-by-state.
Here is your complete guide to small business statistics by state:
Every state has its own rules, regulations, laws, demographics, industries, markets, and economies—but the more you know about general geographic trends in business and financing, the better off you’ll be.
Businesses in Delaware pay the lowest annual percentage rate (APR), which is the annual cost of a loan including origination and documentation fees. Lower loan costs save entrepreneurs money to invest in other areas of their business.
Businesses in Utah have the highest personal and business credit scores, on average, in the nation, making it far easier for them to qualify for low-interest business loans.
Businesses in Delaware receive the most in small business loans from lenders, which certainly is a positive as more financing helps them to grow and invest in their business.
On average, Virginia businesses earn the highest in annual revenue, a primary metric lenders look to when considering offering funding.
According to a national Thumbtack survey, South Dakota is the most small-business-friendly state by factors including taxation, training, licensing requirements, labor regulations, and government website offerings.
Businesses in North Dakota pay the highest APRs for their loans, which tightens available funds that otherwise could be invested back into a business.
On average, Vermont businesses receive the lowest amounts of financing, which could be due to local banks and lenders offering less financing compared with other states.
On average, Hawaii businesses earn the least in annual revenue, which may be due to Hawaii’s primary industry being tourism.
According to the Thumbtack survey, Illinois is the least small-business-friendly state by factors including taxation, training, licensing requirements, labor regulations, and government website offerings.
Entrepreneurs in West Virginia ask for the most in funding, which isn’t a positive in of itself, but does demonstrate their confidence in their businesses.
Entrepreneurs from Rhode Island seek the lowest average funding amounts from lenders. This could be due to a number of factors including lower capital requirements for regional businesses.
Although the state your business is located in is important in the business financing process, it isn’t the most important factor. Your business’s financial viability, business credit score, assets, future plans, and more will all affect your success in acquiring business financing. Fortunately, regardless of state, doing business and getting a business loan is easier than ever in the United States, thanks to technology and internet resources. If you qualify, an online business loan could be available to your business within a matter of hours. Plus, many alternative lenders offer bad credit business loan options to small business owners with personal credit below 620.
Long story short, whether you’re in a hurry, less-than-perfectly qualified, or both, you’ve got options—no matter where you do business.