The 10 states that added the most small businesses

Hanna Horvath Headshot

By

Hanna Horvath, CFP®

Hanna Horvath, CFP®

CERTIFIED FINANCIAL PLANNER™ & Managing Editor, Growth

Hanna Horvath is a CERTIFIED FINANCIAL PLANNER™ and managing editor for growth at Policygenius. She helps produce the Easy Money newsletter, and owns all growth initiatives for Easy Money. She recently passed her exam to become a CERTIFIED FINANCIAL PLANNER™ in November 2020.

Hanna's work has appeared in NBC News, Business Insider and Inc. Magazine. She is regularly quoted in top media outlets, including CNBC, Best Company and HerMoney. She has also appeared on the Money Moolala podcast and All's Fair podcast.

Prior to Policygenius, Hanna wrote for KNBC in Los Angeles and WNBC in New York. When she isn't writing, she's (often) running, (usually) cooking and (sometimes) doing photography.

Published February 13, 2019|2 min read

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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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