Small Business Statistics by State: 2026 Report

Last updated October 20, 2026

From October 2025 to September 2026, our research team analyzed the latest government data from the Census Bureau and the Bureau of Labor Statistics to compile these small business statistics by state. Every figure covers 2025 or 2026, so you’re seeing how small business activity looks in each state right now.

Key Takeaways

  • The U.S. had 12,075,890 private business establishments in the first quarter of 2026, up 3.6% from a year earlier; 42 of 51 jurisdictions grew, led by Colorado (+9.6%).
  • Roofing contractors grew fastest of the 12 common small business industries we tracked, up 4.2% to 33,653 locations; beauty salons grew slowest, up 0.6%.
  • California has the most locations in 8 of the 12 industries, while Florida leads in landscaping, roofing, cleaning and pest control.
  • Americans filed 4,927,840 new business applications from January to September 2026, up 15.3%; Alaska grew fastest (+48.1%).
  • Five-year survival of new businesses (measured through March 2025) ranged from 57.1% in Pennsylvania to 42.2% in Washington.

What This Report Covers

This report breaks down small business statistics by state so you can see how your state compares. Here’s what you’ll find:

  • A 50-state and DC table with each state’s number of business locations, one-year growth, 2026 new business applications and five-year survival rate.
  • Small business industries by state, showing how 12 common small business industries, from landscaping and HVAC to restaurants and salons, are growing nationally and how many locations each state has.
  • Answers to common questions about small businesses in each state.

Small Business Statistics for All 50 States and DC

In the table below, we show how many private business locations (establishments) each state had in early 2026, how that changed in a year, how many new business applications were filed in 2026 and how many new businesses last five years.

Small Business Statistics by State, 2026

State Private business establishments, Q1 2026 Change vs. Q1 2025 New business applications, Jan to Sep 2026 5-year survival rate (through March 2025)
Alabama 162,191 +3.9% 60,621 51.4%
Alaska 23,588 +2.4% 11,351 50.8%
Arizona 225,011 +1.8% 123,141 52.1%
Arkansas 105,070 +2.4% 37,035 48.0%
California 1,953,774 +9.3% 497,172 53.7%
Colorado 261,077 +9.6% 136,993 48.5%
Connecticut 146,577 +1.1% 44,391 51.1%
Delaware 46,462 -0.6% 47,277 48.1%
District of Columbia 50,989 +0.2% 12,387 42.4%
Florida 888,276 +3.5% 577,694 49.5%
Georgia 389,001 +1.6% 224,142 49.9%
Hawaii 62,593 +7.1% 14,053 51.0%
Idaho 97,975 -4.3% 30,567 45.6%
Illinois 380,873 +4.6% 150,514 55.6%
Indiana 192,583 +0.5% 80,688 54.3%
Iowa 104,943 -0.4% 30,457 53.7%
Kansas 97,126 +5.7% 33,984 47.4%
Kentucky 156,726 +1.4% 61,730 54.1%
Louisiana 153,776 +2.4% 63,227 52.9%
Maine 64,403 +2.7% 12,796 54.9%
Maryland 197,316 +1.6% 87,179 50.1%
Massachusetts 288,893 +2.5% 68,670 52.7%
Michigan 304,913 +0.7% 131,698 55.0%
Minnesota 207,043 +1.6% 63,322 54.9%
Mississippi 89,287 +4.2% 50,522 53.5%
Missouri 253,155 +5.8% 96,509 42.9%
Montana 60,991 +4.7% 25,904 53.0%
Nebraska 75,506 +2.3% 18,643 50.9%
Nevada 111,332 +7.0% 54,415 47.6%
New Hampshire 63,466 +0.9% 16,348 47.7%
New Jersey 338,001 +6.5% 141,921 50.5%
New Mexico 63,100 -0.6% 35,083 46.3%
New York 695,065 +0.6% 255,797 51.9%
North Carolina 366,830 +7.6% 156,790 54.2%
North Dakota 34,653 +2.7% 8,012 54.4%
Ohio 330,257 -0.3% 142,973 54.4%
Oklahoma 124,185 +1.0% 58,049 50.2%
Oregon 167,628 -2.2% 52,044 45.8%
Pennsylvania 380,934 +1.5% 131,016 57.1%
Rhode Island 48,301 -0.5% 10,347 48.1%
South Carolina 188,795 -3.1% 81,831 55.9%
South Dakota 38,795 +1.7% 10,965 52.7%
Tennessee 223,601 +9.4% 90,299 46.4%
Texas 851,477 +2.2% 457,383 52.5%
Utah 136,641 +1.7% 69,052 49.7%
Vermont 31,912 +3.9% 6,992 46.6%
Virginia 315,573 +2.2% 118,488 48.8%
Washington 235,371 -0.5% 93,320 42.2%
West Virginia 59,128 +1.6% 15,618 53.6%
Wisconsin 200,440 +3.4% 60,944 52.4%
Wyoming 30,287 +6.1% 67,486 47.5%
United States 12,075,890 +3.6% 4,927,840 51.4%

Top 10 States by Growth in Business Locations, Q1 2025 to Q1 2026

+9.6%
CO
+9.4%
TN
+9.3%
CA
+7.6%
NC
+7.1%
HI
+7.0%
NV
+6.5%
NJ
+6.1%
WY
+5.8%
MO
+5.7%
KS
Figure 1: Percentage change in private business establishments, first quarter 2025 to first quarter 2026, top 10 states. Source: BLS QCEW, released August 28, 2026.

Sources: BLS Quarterly Census of Employment and Wages (released August 28, 2026; Q1 2026 data are preliminary); Census Bureau Business Formation Statistics (released October 2026); BLS Business Employment Dynamics, Table 7 (2026 release; businesses opened in the year ended March 2020, measured through March 2025). Establishment counts include businesses of every size.

What the Numbers Show

  • California has the most business locations at 1,953,774, followed by Florida (888,276) and Texas (851,477).
  • Colorado (+9.6%), Tennessee (+9.4%) and California (+9.3%) grew fastest. Idaho (-4.3%), South Carolina (-3.1%) and Oregon (-2.2%) shrank the most. Large one-year jumps can partly reflect how employers register unemployment insurance accounts.
  • Florida led 2026 new business applications with 577,694, and Pennsylvania had the best five-year survival rate at 57.1%.

Small Business Industries by State

In the table below, we compare 12 industries made up mostly of small, local businesses, ranked by how fast their number of locations grew nationally from the first quarter of 2025 to the first quarter of 2026.

Common Small Business Industries in the U.S., Q1 2025 to Q1 2026

Industry (NAICS code) U.S. establishments, Q1 2025 U.S. establishments, Q1 2026 Change State with the most (Q1 2026)
Roofing contractors (23816) 32,299 33,653 +4.2% Florida (5,148)
Plumbing, heating and air-conditioning (HVAC) contractors (23822) 122,581 125,652 +2.5% California (13,443)
Pest control services (561710) 17,515 17,933 +2.4% Florida (2,500)
Electrical contractors (23821) 99,337 101,565 +2.2% California (11,540)
Accounting, tax and bookkeeping services (5412) 186,293 189,872 +1.9% California (20,953)
Landscaping services (561730) 121,751 124,018 +1.9% Florida (11,734)
Restaurants and other eating places (7225) 620,865 632,336 +1.8% California (81,044)
Dentist offices (6212) 136,701 138,982 +1.7% California (23,486)
Real estate agent and broker offices (531210) 157,518 159,989 +1.6% California (23,826)
Auto repair and maintenance (8111) 173,572 176,086 +1.4% California (20,911)
Janitorial and cleaning services (561720) 82,416 83,480 +1.3% Florida (8,766)
Beauty salons (812112) 77,129 77,594 +0.6% California (8,648)

U.S. Growth in Business Locations by Industry, Q1 2025 to Q1 2026

+4.2%
Roofing
+2.5%
HVAC
+2.4%
Pest
+2.2%
Electric
+1.9%
Acctg
+1.9%
Landsc.
+1.8%
Rest.
+1.7%
Dental
+1.6%
Realty
+1.4%
Auto
+1.3%
Cleaning
+0.6%
Salons

HVAC = plumbing, heating and air-conditioning contractors; Acctg = accounting, tax and bookkeeping; Realty = real estate agents and brokers.

Figure 2: Percentage change in U.S. private establishments for 12 common small business industries. Source: BLS QCEW, released August 28, 2026.

Source: BLS Quarterly Census of Employment and Wages, private establishments (released August 28, 2026; Q1 2026 data are preliminary).

What the Numbers Show

  • Every one of the 12 industries added locations. Roofing (+4.2%), HVAC and plumbing (+2.5%) and pest control (+2.4%) grew fastest. All three are home-service trades, while beauty salons barely grew (+0.6%).
  • Restaurants are by far the largest group with 632,336 locations, five times as many as landscaping (124,018).
  • Tennessee posted the fastest growth among states with at least 500 locations in 7 of the 12 industries, including roofing (+13.9%) and electrical contractors (+10.3%), in line with its 9.4% overall jump.

In the table below, we show how many locations six of the most common small business industries had in each state in the first quarter of 2026.

Small Business Locations by State and Industry, Q1 2026

State Landscaping Plumbing and HVAC Roofing Restaurants Auto repair Beauty salons
Alabama 1,699 2,168 470 9,618 2,585 814
Alaska 206 273 81 1,252 373 100
Arizona 1,665 2,993 637 10,790 3,310 1,411
Arkansas 931 1,436 339 5,542 1,654 433
California 10,297 13,443 3,822 81,044 20,911 8,648
Colorado 2,331 2,852 1,006 11,396 3,500 1,866
Connecticut 2,287 1,471 249 8,004 1,815 1,009
Delaware 526 472 83 2,115 503 276
District of Columbia 41 84 18 2,261 81 164
Florida 11,734 11,174 5,148 43,592 12,157 7,038
Georgia 3,605 3,786 1,164 21,987 5,529 2,661
Hawaii 606 547 138 4,050 615 345
Idaho 1,355 1,161 388 3,652 1,409 430
Illinois 5,277 4,205 1,157 22,190 7,051 3,076
Indiana 2,661 2,284 672 11,854 3,760 1,373
Iowa 1,225 1,145 292 5,325 2,033 666
Kansas 973 1,084 291 4,964 1,618 482
Kentucky 1,431 1,786 407 8,122 2,263 718
Louisiana 1,185 1,992 409 10,039 2,436 746
Maine 1,037 865 116 3,050 983 275
Maryland 1,952 1,912 338 10,388 2,857 1,305
Massachusetts 4,232 3,155 425 13,871 3,695 2,369
Michigan 3,938 2,865 571 16,161 5,665 1,705
Minnesota 2,314 1,850 465 9,215 3,217 1,183
Mississippi 795 1,089 208 5,690 1,560 333
Missouri 2,279 2,250 724 11,098 3,763 1,167
Montana 790 822 177 2,212 945 224
Nebraska 926 934 364 3,567 1,436 607
Nevada 838 1,093 170 6,418 1,503 586
New Hampshire 1,115 851 108 3,038 1,104 407
New Jersey 4,583 3,483 455 18,283 4,444 3,374
New Mexico 399 726 203 3,240 968 273
New York 7,561 6,802 765 42,343 8,653 6,094
North Carolina 4,824 4,798 1,066 20,893 5,949 2,332
North Dakota 322 412 107 1,356 620 230
Ohio 4,426 3,494 1,134 21,146 5,845 2,513
Oklahoma 1,108 1,899 597 6,909 2,027 546
Oregon 2,008 1,570 637 9,376 2,266 658
Pennsylvania 5,273 4,370 984 22,482 7,624 4,512
Rhode Island 847 553 91 2,596 671 365
South Carolina 1,852 1,841 397 10,275 2,556 896
South Dakota 378 465 125 1,568 778 135
Tennessee 2,246 2,492 641 13,521 3,410 1,033
Texas 5,892 10,270 2,975 53,362 14,779 5,294
Utah 1,673 1,786 486 5,868 2,081 994
Vermont 570 330 90 1,148 477 124
Virginia 2,980 2,877 587 16,461 4,420 2,525
Washington 3,299 2,346 1,092 14,877 3,410 1,504
West Virginia 528 555 120 3,037 916 231
Wisconsin 2,664 2,151 584 9,973 3,366 1,475
Wyoming 334 390 80 1,117 495 69
United States 124,018 125,652 33,653 632,336 176,086 77,594

Source: BLS Quarterly Census of Employment and Wages, private establishments, first quarter 2026 (released August 28, 2026; preliminary). Plumbing and HVAC is NAICS 23822; beauty salons is NAICS 812112.

Frequently Asked Questions

Which state has the most small businesses?

California has the most private business locations, with 1,953,774 in the first quarter of 2026, followed by Florida (888,276) and Texas (851,477). Establishment counts include businesses of every size.

Which states are growing fastest?

Colorado’s number of business locations grew 9.6% from the first quarter of 2025 to the first quarter of 2026, followed by Tennessee (9.4%) and California (9.3%). For new business applications, Alaska leads 2026 with a 48.1% increase from January to September.

Which state has the most landscaping, HVAC and roofing businesses?

Florida has the most landscaping (11,734) and roofing (5,148) locations, while California has the most plumbing and HVAC contractors (13,443), as of the first quarter of 2026.

What percentage of new businesses survive five years, by state?

Nationally, 51.4% of private-sector establishments that opened in the year ended March 2020 were still operating in March 2025. State rates range from 57.1% in Pennsylvania to 42.2% in Washington.

Local owners can earn recognition through our small business awards. For national trends, see our Small Business Growth Statistics: 2026 Report.

Sources


Written by Savannah Davis, Voted Number One team. Savannah works with the local business owners who take part in the Voted Number One community awards.

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