The 10 states that added the most small businesses

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The 10 states that added the most small businesses

When you think of American companies, Amazon, Apple or Google likely come to mind. But the vast majority of the companies in America are small businesses.

The U.S. Small Business Administration defines a small business as having fewer than 500 employees. Small companies make up 99.9% of all U.S. businesses, and there are more than 30 million of them across the country. They employ almost half of all U.S. employees.

The biggest industries that employ small business workers are health care, food services and retail. They are also some of the industries expected to best survive the next recession.

We combed through 2018 SBA data to learn which states were the best for small businesses. We looked at how many jobs small businesses created in 2018, the total number of small businesses and the percent of employment from small businesses in each state. Here are the states that created the most small businesses last year.

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10. Colorado

Number of new small businesses: 5,898
Number of new jobs created: 17,847
Total number of small businesses: 611,495
Percent of employment from small businesses: 48.6%

9. New Jersey

Number of new small businesses: 6,199
Number of new jobs created: 25,490
Total number of small businesses: 861,373
Percent of employment from small businesses: 49.8%

8. North Carolina

Number of new small businesses: 6,878
Number of new jobs created: 25,006
Total number of small businesses: 890,398
Percent of employment from small businesses: 44.3%

7. Pennsylvania

Number of new small businesses: 7,298
Number of new jobs created: 25,858
Total number of small businesses: 1,037,737
Percent of employment from small businesses: 46.7%

6. Illinois

Number of new small businesses: 7,597
Number of new jobs created: 31,194
Total number of small businesses: 1,219,654
Percent of employment from small businesses: 45.5%

5. Georgia

Number of new small businesses: 7,830
Number of new jobs created: 34,863
Total number of small businesses: 1,041,515
Percent of employment from small businesses: 43.2%

4. New York

Number of new small businesses: 14,417
Number of new jobs created: 50,848
Total number of small businesses: 2,143,667
Percent of employment from small businesses: 50.2%

3. Texas

Number of new small businesses: 18,499
Number of new jobs created: 80,792
Total number of small businesses: 2,627,724
Percent of employment from small businesses: 45.6%

2. Florida

Number of new small businesses: 20,880
Number of new jobs created: 88,109
Total number of small businesses: 2,471,260
Percent of employment from small businesses: 42.2%

1. California

Number of new small businesses: 47,250
Number of new jobs created: 135,472
Total number of small businesses: 3,941,201
Percent of employment from small businesses: 48.8%

If you are a small business owner, it's important to make sure you are getting all the financial protection you need for yourself and your employees. Here's a guide to getting life insurance as a business owner.

Source: The U.S. Small Business Administration

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