Study shows Idaho leads nation in small business growth

A recent study has shed light on how small businesses are faring across the country, and particularly in Idaho.

Idaho leads the nation in small business growth, according to research from online small business lender OnDeck.

The firm analyzed the latest U.S. Census data from 2020 to 2021, which showed the Gem State experienced a +6.55% increase in small businesses, which was the highest in the country for that period.

In the top 10 states, Idaho ranked first with a full percentage point higher, followed by Delaware in second with 5.55%; Florida third at 5.22%; Nevada fourth with 5.12%; Georgia ranks fifth with 5.05%; Utah sixth with 4.56%; Arizona seventh with 4.32%; Texas eighth with 4.19%; South Carolina ninth with 4.09%; and Wyoming 10th with 3.83%.

“It’s no surprise that Idaho is recognized as the state with the highest honors for business growth – that’s what happens when you combine a supportive business environment with the drive and determination of our local entrepreneurs,” said Shannon Madsen, district manager of the Boise District Office USA Small Business Administration. “Small businesses thrive here thanks to our state’s unique culture of collaboration and opportunity.”

In addition to the state coming in first, areas within the state also had standout numbers.

Boise had the country’s highest growth rate among mid-sized metro areas at 7.83%. Coeur d’Alene had the fourth highest growth rate among small metropolitan areas at 8.51%. And Jefferson County experienced a growth rate of 9.59%, ranking first among all counties in the state.

Idaho led the nation in small business growth, but the metro area with the largest small business growth was LaGrange, Georgia, with a 19.85% increase.

The fastest growing county in the country was Sheridan County, Wyoming, which grew by a whopping 21.51%.

The study’s results indicated that Idaho had advantages such as having the eighth-lowest labor costs and the benefits of “a moderate labor market where people have money to spend but there is enough labor competition for Idaho’s small businesses to make up for the nightmares.” in recruiting that other regions have faced in recent years.”

The states that were at the bottom in terms of growth were Vermont at 1.18%; Connecticut at 1.13%; New Jersey at 1.06%; Massachusetts at 1.03%; West Virginia no change at 0.00%; and New York lost small businesses by -0.05%.

Madsen noted that her agency helps support small businesses, providing the resources to not only get up and running, but also thrive.

“The Small Business Administration is proud to contribute to this success by providing essential resources such as access to capital, mentoring and contracting, and tools to help businesses start, grow and succeed,” she said. “We remain committed to providing the resources and support to help Idaho companies succeed and continue to lead the way in business growth.”