Small business operations in Minnesota employed 1.2 million individuals or almost half of the private workforce in the state, according to a recent report by the U.S. Small Business Administration. In its profile, the SBA reported that there were 503,055 small businesses in the state which comprise 97.8 of all of its employers.
The SBA classifies a business with less than 500 employees as a small business. The three most prevalent small business classifications in the state were construction; scientific, technical and professional services; and, other services except or professional administration. By comparison, the three most common industries in the United States were science, professional and technical services; other services; and, retail trade.
The SBA also found that there were 8,472 business startups in 2010 and 70.7 percent of these operations were still in business through 2012. Of the 8,797 establishments that started operations in 2013, 80.4 percent survived through 2014.
According to the SBA, 4,659 small businesses opened while 6,645 closed in the state during the first quarter of 2014. The number of business bankruptcies also dropped from 2010 to 2014. The number of sole proprietorships, however, declined by 3.5 percent from 2012 through 2013.
The state also lagged behind the country in private-sector business growth. Minnesota’s achieved 2.0 percent growth in this category over the 12-month period ending in October 2014. The national average rate of growth was 2.3 percent during that period.
Legal advice on business planning and formation can help small business to prosper and not merely survive in Minnesota. Planning can help overcome the legal and financial obstacles that hinder the start, operation and profitability of business.
Source: Small Business Administration, “Minnesota Small Business Profile,” Retrieved May 18, 2015