10. South Carolina
- Proportion of jobs created by new businesses, 2022: 7.49%
- Total jobs created by new businesses, 2022: 160,997
- Average number of new hires, 2022: 6
South Carolina ranks 10th in the nation for the most jobs created by new businesses. The most recent data shows that 7.49 percent of all employment opportunities in South Carolina were created by new companies. In 2022, 3-year-old businesses in South Carolina accounted for 2.89 percent of all jobs in the state, the third highest share of jobs provided by 3-year-old businesses among all other states.
9. Oklahoma
- Proportion of jobs created by new businesses, 2022: 7.63%
- Total jobs created by new businesses, 2022: 122,259
- Average number of new hires, 2022: 7
Oklahoma, which ranked ninth in the study, saw an impressive 7.63 percent of jobs created by new businesses in the state. One-year businesses in Oklahoma contributed the sixth highest proportion of jobs compared to 1-year businesses in all other states.
8. New Jersey
- Proportion of jobs created by new businesses, 2022: 7.81%
- Total jobs created by new businesses, 2022: 318,248
- Average number of new hires, 2022: 6
According to the New Jersey Department of State, 49 percent of workers are employed by small businesses. Perhaps unsurprisingly, the Garden State ranked eighth in this analysis, with 7.81 percent of all jobs created by new companies in 2022. Surprisingly, 2-year-old New Jersey businesses contributed 2.80 percent of all jobs to the economy, the second highest rate. compared to businesses of the same age in all other states.
7. Colorado
- Proportion of jobs created by new businesses, 2022: 7.88%
- Total jobs created by new businesses, 2022: 218,303
- Average number of employees per new hire, 2022: 5
The Centennial State ranks seventh in the nation when it comes to jobs created by new businesses. In 2022, Colorado’s 2-year-old businesses created the sixth-highest rate of jobs among 2-year-old businesses of all other states, at 2.66 percent, compared to the national average of 2.23 percent.
6. California
- Proportion of jobs created by new businesses, 2022: 7.95%
- Total jobs created by new businesses, 2022: 1,405,572
- Average number of employees per new hire, 2022: 4
Small businesses create two-thirds of new jobs and employ nearly half (48.5 percent) of private sector workers in California. It’s no surprise, then, that the Golden State ranks sixth in the country for the number of jobs created by new businesses. In 2022, 2-year-old businesses in California generated the fourth-highest employment rate among all other states with the same tenure, 2.72 percent compared to the national average of 2.23 percent.
5. Georgia
- Proportion of jobs created by new businesses, 2022: 8.09%
- Total jobs created by new businesses, 2022: 375,095
- Average number of new hires, 2022: 7
According to Small Business Majority, Georgia’s 1.2 million small businesses account for 99.6 percent of all businesses in the state and employ nearly half of Georgia’s workforce. 8.09 percent of all jobs in Georgia were created by new companies. In 2022, 1-year firms created the fifth highest rate of jobs in Georgia compared to 1-year firms in all other states, compared to the national average of 2.80 percent of 2.21 percent.
4. Utah
- Proportion of jobs created by new businesses, 2022: 8.47%
- Total jobs created by new businesses, 2022: 137,857
- Average number of new hires, 2022: 6
The fourth place in the ranking is the state of Utah. 8.47 percent of all jobs created in the state came from new businesses. In 2022, Utah’s 3-year-old businesses generated the highest employment rate of all 3-year-old businesses in all other states, at 3.14 percent, compared to the national average of 2.20 percent.
3. Idaho
- Proportion of jobs created by new businesses, 2022: 8.49%
- Total jobs created by new businesses, 2022: 68,435
- Average number of employees per new hire, 2022: 5
In 2022, according to the Idaho Department of Labor, the state has significantly more startups than the nation as a whole relative to the local workforce. As a result, it should come as no surprise that the Gem State ranked third on the list this year. New companies accounted for 8.49 percent of employment opportunities created in the state. In 2022, Idaho had the third highest proportion of jobs created by businesses established in 2020 and 2021 compared to all other states (2.94 percent and 2.72 percent in Idaho, respectively).
2. Florida
- Proportion of jobs created by new businesses, 2022: 9.02%
- Total jobs created by new businesses, 2022: 835,657
- Average number of new hires, 2022: 6
According to FloridaCommerce, private sector employment in the Sunshine State grew by 3.3 percent (+277,000 jobs) year-over-year in July 2023. Such statistics took the second place in the state ranking. Of all 2,022 jobs in Florida, 9.02 percent were created by new businesses. Florida has the highest proportion of jobs created by 1- and 2-year businesses of all other states (3.03 percent and 3.15 percent in Florida, respectively).
1. Nevada
- Proportion of jobs created by new businesses, 2022: 9.03%
- Total jobs created by new businesses, 2022: 130,315
- Average number of new hires, 2022: 6
Nevada ranks first when it comes to jobs created by new businesses. In the Silver State, an impressive 9.03 percent of all jobs in 2022 were created by new businesses. In 2022, 3-year-old businesses in Nevada generated the highest employment rate of 3-year-old businesses in all other states, at 3.37 percent, compared to the national average of 2.20 percent.
Methodology
Swyft Filings’ research team referenced the most recent working age and survival data published by the Bureau of Labor Statistics to determine the states with the most jobs created by small businesses. In this analysis, new businesses are defined as those that are one to three years old. For each state, researchers at Swyft Filings calculated the proportion of jobs created by these new businesses by taking the number of workers they provide in 2022 and dividing by total employment in that state during the same period.
This story produced by Swyft Filings, business formation service, and reviewed and distributed by Stacker Media.