Canva

In 2021, the IRS received a whopping 5.4 million business applications—an all-time high since the U.S. government began tracking this data in 2004. The year with the second-highest number of new business applications? 2020. Today, small businesses employ nearly half of the nation’s workers, according to a Chamber of Commerce report.

It’s fair to say that the past few years have been banner years for small businesses, but what about regional differences? The business climate in a small town in Texas is likely not the same as a small town in Connecticut. The Chamber of Commerce report found that the Midwest was the most business-friendly region, thanks to the relatively low cost of living, well-educated workforce, and regulations lowering taxes and easing zoning restrictions for businesses.

Of course, the East and West coasts also have plenty to offer, from California’s Silicon Valley and Hollywood studios to New York’s financial hub to Massachusetts’ prominence in the aerospace, defense, and information technology industries. A few states—including Delaware, Wyoming, and Nevada—even allow you to incorporate your business within their borders without ever setting foot there.

For even more specific data, let’s take it a step further by analyzing counties. Are certain counties more friendly to small businesses than others? To pinpoint the areas nationwide where small businesses abound, altLINE used Census Bureau data to find the county in each state with the highest concentration of small businesses in 2021, calculated as small establishments per 1,000 residents. Small establishments are defined as those with fewer than 500 employees. Counties with fewer than 1,000 residents were excluded from the analysis, as well as counties for which the Census Bureau didn’t have population estimates. Population data for Connecticut counties were sourced via the Federal Reserve.

Another important factor to consider: States where nonresidents are allowed to incorporate businesses will also have a higher ratio of small businesses to residents since not all small businesses are actually operated by people living in that state.

Taking a close look at the type of counties that topped the list in each state also reveals some interesting trends. World-class vacation destinations—like Nantucket, Massachusetts; Maui, Hawaii; Aspen, Colorado; Key West, Florida; and Sedona, Arizona—are well represented on this list, perhaps because tourists are looking to get a sense of how the locals live through small businesses like restaurants, bakeries, bars, and boutiques.

While the counties on this list do include a few major cities like Manhattan, Atlanta, and Charleston, South Carolina, less populated counties with smaller towns are much more common. In fact, 19 of the counties on this list have a population of less than 25,000. Although most of the nation’s small businesses are located in major metropolitan areas, those that are located in rural areas tend to be more stable—possibly due to loyalty from local residents or the absence of competition from large corporations.

Keep reading to discover the county in your state with the highest concentration of small businesses. It just might give you inspiration for your next endeavor.

Canva

Alabama: Clarke County

• Total small business establishments: 593 (26.1 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 22,715

Canva

Alaska: Skagway

• Total small business establishments: 97 (84.9 per 1,000 residents)
• Share of establishments that are small: 99.0%
• 2021 population: 1,142

HildaWeges Photography // Shutterstock

Arizona: Coconino County

• Total small business establishments: 3,832 (26.8 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 142,780

Canva

Arkansas: Pulaski County

• Total small business establishments: 12,269 (30.8 per 1,000 residents)
• Share of establishments that are small: 99.7%
• 2021 population: 398,069

Canva

California: Mono County

• Total small business establishments: 658 (49.6 per 1,000 residents)
• Share of establishments that are small: 99.4%
• 2021 population: 13,261

Canva

Colorado: Pitkin County

• Total small business establishments: 1,700 (98.0 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 17,350

Canva

Connecticut: Fairfield County

• Total small business establishments: 26,860 (28.0 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 959,768

Real Window Creative // Shutterstock

Delaware: New Castle County

• Total small business establishments: 17,405 (30.4 per 1,000 residents)
• Share of establishments that are small: 99.7%
• 2021 population: 572,714

Canva

Florida: Monroe County

• Total small business establishments: 4,009 (48.7 per 1,000 residents)
• Share of establishments that are small: 100.0%
• 2021 population: 82,265

Brett Barnhill // Shutterstock

Georgia: Fulton County

• Total small business establishments: 40,442 (38.1 per 1,000 residents)
• Share of establishments that are small: 99.6%
• 2021 population: 1,062,531

pikappa51 // Shutterstock

Hawaii: Maui County

• Total small business establishments: 4,811 (29.2 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 164,817

Canva

Idaho: Blaine County

• Total small business establishments: 1,655 (66.8 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 24,767

Canva

Illinois: DuPage County

• Total small business establishments: 33,970 (36.7 per 1,000 residents)
• Share of establishments that are small: 99.7%
• 2021 population: 926,448

Roberto Galan // Shutterstock

Indiana: Dubois County

• Total small business establishments: 1,287 (29.5 per 1,000 residents)
• Share of establishments that are small: 99.4%
• 2021 population: 43,625

Canva

Iowa: Dickinson County

• Total small business establishments: 788 (44.1 per 1,000 residents)
• Share of establishments that are small: 99.6%
• 2021 population: 17,852

Canva

Kansas: Gove County

• Total small business establishments: 127 (46.4 per 1,000 residents)
• Share of establishments that are small: 98.4%
• 2021 population: 2,735

Canva

Kentucky: McCracken County

• Total small business establishments: 2,033 (30.1 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 67,612

Jacob Boomsma // Shutterstock

Louisiana: Lafayette Parish

• Total small business establishments: 8,664 (35.4 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 244,922

E.J.Johnson Photography // Shutterstock

Maine: Knox County

• Total small business establishments: 1,802 (43.9 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 41,074

Canva

Maryland: Worcester County

• Total small business establishments: 2,184 (40.9 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 53,370

Canva

Massachusetts: Nantucket

• Total small business establishments: 1,195 (82.4 per 1,000 residents)
• Share of establishments that are small: 99.7%
• 2021 population: 14,499

Canva

Michigan: Emmet County

• Total small business establishments: 1,524 (44.5 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 34,280

Canva

Minnesota: Cook County

• Total small business establishments: 287 (51.0 per 1,000 residents)
• Share of establishments that are small: 99.3%
• 2021 population: 5,623

Canva

Mississippi: Lee County

• Total small business establishments: 2,531 (30.5 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 83,043

Canva

Missouri: Atchison County

• Total small business establishments: 180 (34.4 per 1,000 residents)
• Share of establishments that are small: 99.4%
• 2021 population: 5,227

Canva

Montana: Gallatin County

• Total small business establishments: 6,471 (52.6 per 1,000 residents)
• Share of establishments that are small: 100.0%
• 2021 population: 123,051

Danita Delimont // Shutterstock

Nebraska: Garfield County

• Total small business establishments: 101 (55.1 per 1,000 residents)
• Share of establishments that are small: 98.1%
• 2021 population: 1,832

Gchapel // Shutterstock

Nevada: Douglas County

• Total small business establishments: 1,671 (33.4 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 49,969

NEKVT // Shutterstock

New Hampshire: Carroll County

• Total small business establishments: 1,879 (36.3 per 1,000 residents)
• Share of establishments that are small: 100.0%
• 2021 population: 51,725

Jorge Moro // Shutterstock

New Jersey: Cape May County

• Total small business establishments: 3,761 (39.3 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 95,768

Gestalt Imagery // Shutterstock

New Mexico: Lincoln County

• Total small business establishments: 678 (33.2 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 20,421

pisaphotography // Shutterstock

New York: Manhattan

• Total small business establishments: 95,564 (60.5 per 1,000 residents)
• Share of establishments that are small: 99.5%
• 2021 population: 1,578,801

MarkVanDykePhotography // Shutterstock

North Carolina: Dare County

• Total small business establishments: 1,999 (52.8 per 1,000 residents)
• Share of establishments that are small: 100.0%
• 2021 population: 37,889

Logan Bush // Shutterstock

North Dakota: Bowman County

• Total small business establishments: 152 (52.4 per 1,000 residents)
• Share of establishments that are small: 99.3%
• 2021 population: 2,902

Canva

Ohio: Holmes County

• Total small business establishments: 1,351 (30.5 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 44,374

Canva

Oklahoma: Woodward County

• Total small business establishments: 760 (37.6 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 20,216

Canva

Oregon: Wallowa County

• Total small business establishments: 362 (47.9 per 1,000 residents)
• Share of establishments that are small: 99.5%
• 2021 population: 7,554

Canva

Pennsylvania: Montgomery County

• Total small business establishments: 26,469 (30.6 per 1,000 residents)
• Share of establishments that are small: 99.6%
• 2021 population: 864,022

Ramunas Bruzas // Shutterstock

Rhode Island: Newport County

• Total small business establishments: 2,779 (32.4 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 85,662

Canva

South Carolina: Charleston County

• Total small business establishments: 14,818 (35.8 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 414,403

Michael J Magee // Shutterstock

South Dakota: Sully County

• Total small business establishments: 71 (48.3 per 1,000 residents)
• Share of establishments that are small: 100.0%
• 2021 population: 1,471

Canva

Tennessee: Williamson County

• Total small business establishments: 8,014 (31.3 per 1,000 residents)
• Share of establishments that are small: 99.7%
• 2021 population: 256,209

Canva

Texas: Gillespie County

• Total small business establishments: 1,122 (41.1 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 27,282

Canva

Utah: Summit County

• Total small business establishments: 2,702 (62.6 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 43,168

Joseph Sohm // Shutterstock

Vermont: Lamoille County

• Total small business establishments: 955 (36.5 per 1,000 residents)
• Share of establishments that are small: 99.6%
• 2021 population: 26,147

Kristi Blokhin // Shutterstock

Virginia: Fairfax County

• Total small business establishments: 1,994 (81.8 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 24,391

Canva

Washington: San Juan County

• Total small business establishments: 1,024 (55.0 per 1,000 residents)
• Share of establishments that are small: 99.9%
• 2021 population: 18,615

Canva

West Virginia: Ohio County

• Total small business establishments: 1,283 (30.6 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 41,878

Canva

Wisconsin: Door County

• Total small business establishments: 1,291 (42.5 per 1,000 residents)
• Share of establishments that are small: 100.0%
• 2021 population: 30,406

C Rolan // Shutterstock

Wyoming: Teton County

• Total small business establishments: 2,341 (99.1 per 1,000 residents)
• Share of establishments that are small: 99.8%
• 2021 population: 23,622

Written by Annalise Mantz. Data reporting by Paxtyn Merten. Story editing by Jeff Inglis. Copy editing by Tim Bruns.