BIRMINGHAM, Ala. (WIAT) — A report by Business.org found that almost half of Alabamians work for a small business.
Business.org used the Census Bureau’s 2018 Statistics of U.S. Businesses to calculate the percentage of people working for small businesses nationally and in each state. For the purposes of the study, a small business is defined as a business with less than 500 employees and does not include businesses without any employees
Overall, nearly 47% of people in the U.S. are employed by small businesses. Some states have significantly higher averages, like Montanna where more than 67% of people work for a small business. Wyoming has the second-highest percentage of the population working for small businesses, sitting at over 63%. Vermont came third with 60%.
But other states show different trends. For example, small businesses in Florida employ only about 41% of the population. Arizona, Georgia and Tennessee all employ around 42% of their populations, and Utah employs just over 45%.
Alabama, however, sits close to the national percentage, with small businesses in the state employing nearly 47% of the population, just .5% less than the national average.
The report also found that the U.S. has over six million small businesses that collectively employ more than 61 million people.
To learn more about the methods of this study or to find out where other states ranked, click here.