IT service businesses are the most common in the Northwest, Midwest and Southern U.S. currently. But in the West, advertising and marketing businesses occupy that spot. However, advertising and marketing small businesses are the second most common in the Northeast and Midwest, a recent study found.
These results and more were revealed as part of a new research conducted by human capital management services company Paychex (NASDAQ:PAYX).
Location Makes a Difference
Not surprisingly, location often plays a very important role in contributing to the success of small businesses. For example, the highest concentrations of small businesses per 100,000 residents were in Washington D.C., Virginia and Utah.
And the highest concentration was in Washington D.C., including a number of IT companies and government services firms, to b expected given proximity to the nation’s capital.
As far as metropolitan areas are concerned, New York City turned out to be the most well-represented area across small businesses. In specific numbers, over 9 percent of small businesses on the list are from New York City.
Small Business Growth Varies By Industry
Many small businesses featured in the study are new. Over 30 percent of small businesses are making their first appearance this year. Meanwhile more than 70 percent have been featured only one, two or three years in total.
Deeper analysis also reveals small businesses in the energy (1,063 percent), consumer products and services (857 percent) and food and beverage (766 percent) sectors have witnessed the highest average three-year growth.
Businesses operating in human resources (231 percent), telecommunications (212 percent) and environmental services (178 percent) sectors, on the other hand, languished at the bottom of the list.
Fastest Growing Small Businesses Analyzed
Paychex examined data the Inc. 5000 List of America’s Fastest-Growing Private Companies to understand the key trends of these fast-growing businesses, particularly those with less than 500 employees.
Most Common Small Business Industry By Region
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