This story originally appeared on altLINE and was produced and distributed in partnership with Stacker Studio.
Michigan small businesses thrive in these counties
In 2021, the IRS received a whopping 5.4 million business applications—an all-time high since the U.S. government began tracking this data in 2004. The year with the second-highest number of new business applications? 2020. Today, small businesses employ nearly half of the nation's workers, according to a Chamber of Commerce report.
It's fair to say that the past few years have been banner years for small businesses, but what about regional differences? The business climate in a small town in Texas is likely not the same as a small town in Connecticut. The Chamber of Commerce report found that the Midwest was the most business-friendly region, thanks to the relatively low cost of living, well-educated workforce, and regulations lowering taxes and easing zoning restrictions for businesses.
Of course, the East and West coasts also have plenty to offer, from California's Silicon Valley and Hollywood studios to New York's financial hub to Massachusetts' prominence in the aerospace, defense, and information technology industries. A few states—including Delaware, Wyoming, and Nevada—even allow you to incorporate your business within their borders without ever setting foot there.
For even more specific data, let's take it a step further by analyzing counties. Are certain counties more friendly to small businesses than others? To pinpoint the areas where small businesses abound, altLINE used Census Bureau data to find the counties in Michigan with the highest concentration of small businesses in 2021, calculated as small establishments per 1,000 residents. Small establishments are defined as those with fewer than 500 employees. Counties with fewer than 1,000 residents were excluded from the analysis, as well as counties for which the Census Bureau didn't have population estimates.
Another important factor to consider: States where nonresidents are allowed to incorporate businesses will also have a higher ratio of small businesses to residents since not all small businesses are actually operated by people living in that state.
Taking a close look at the type of counties that topped the list in each state also reveals some interesting trends. World-class vacation destinations are well represented on the lists of each state, perhaps because tourists are looking to get a sense of how the locals live through small businesses like restaurants, bakeries, bars, and boutiques.
While the top counties in each state do include a few major cities, less populated counties with smaller towns are much more common. Although most of the nation's small businesses are located in major metropolitan areas, those that are located in rural areas tend to be more stable—possibly due to loyalty from local residents or the absence of competition from large corporations.
Keep reading to discover the counties in Michigan with the highest concentration of small businesses, and see how it compares across 50 states. It just might give you inspiration for your next endeavor.
This story features data reporting by Paxtyn Merten, writing by Annalise Mantz, and is part of a series utilizing data automation across 50 states.
#50. Sanilac County
- Total small business establishments: 810 (20.0 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 40,604
#49. Missaukee County
- Total small business establishments: 307 (20.3 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 15,164
#48. Allegan County
- Total small business establishments: 2,453 (20.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 121,010
#47. Baraga County
- Total small business establishments: 169 (20.4 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 8,291
#46. Arenac County
- Total small business establishments: 318 (21.2 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 15,000
#44. Midland County
- Total small business establishments: 1,775 (21.3 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 83,426
#44. Isabella County
- Total small business establishments: 1,368 (21.3 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 64,291
#43. Kalamazoo County
- Total small business establishments: 5,579 (21.4 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 260,688
#42. Saginaw County
- Total small business establishments: 4,088 (21.6 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 189,590
#41. Chippewa County
- Total small business establishments: 774 (21.6 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 35,867
#40. Macomb County
- Total small business establishments: 19,078 (21.7 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 877,385
#39. Ottawa County
- Total small business establishments: 6,495 (21.8 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 298,317
#38. Oscoda County
- Total small business establishments: 184 (22.1 per 1,000 residents)
- Share of establishments that are small: 98.4%
- 2021 population: 8,328
#36. Washtenaw County
- Total small business establishments: 8,123 (22.3 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 364,998
#36. Montmorency County
- Total small business establishments: 207 (22.3 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 9,302
#35. Livingston County
- Total small business establishments: 4,353 (22.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 195,277
#34. Manistee County
- Total small business establishments: 565 (22.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 25,299
#33. Ingham County
- Total small business establishments: 6,071 (22.4 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 271,427
#32. Roscommon County
- Total small business establishments: 534 (22.6 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 23,677
#31. Crawford County
- Total small business establishments: 300 (22.6 per 1,000 residents)
- Share of establishments that are small: 99.0%
- 2021 population: 13,292
#30. Berrien County
- Total small business establishments: 3,507 (22.9 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 153,377
#29. Houghton County
- Total small business establishments: 873 (23.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 37,444
#28. Presque Isle County
- Total small business establishments: 309 (23.5 per 1,000 residents)
- Share of establishments that are small: 98.7%
- 2021 population: 13,173
#27. Iosco County
- Total small business establishments: 606 (23.9 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 25,374
#25. Antrim County
- Total small business establishments: 578 (24.2 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 23,884
#25. Mason County
- Total small business establishments: 711 (24.2 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 29,381
#24. Marquette County
- Total small business establishments: 1,618 (24.6 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 65,800
#23. Gogebic County
- Total small business establishments: 354 (24.7 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 14,356
#22. Alger County
- Total small business establishments: 225 (25.6 per 1,000 residents)
- Share of establishments that are small: 99.1%
- 2021 population: 8,789
#21. Benzie County
- Total small business establishments: 471 (25.8 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 18,236
#20. Kent County
- Total small business establishments: 17,173 (26.1 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 659,000
#19. Wexford County
- Total small business establishments: 892 (26.3 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 33,940
#18. Delta County
- Total small business establishments: 973 (26.4 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 36,834
#17. Schoolcraft County
- Total small business establishments: 213 (26.4 per 1,000 residents)
- Share of establishments that are small: 98.2%
- 2021 population: 8,060
#16. Ogemaw County
- Total small business establishments: 550 (26.5 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 20,783
#15. Alpena County
- Total small business establishments: 799 (27.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 28,916
#14. Ontonagon County
- Total small business establishments: 164 (28.0 per 1,000 residents)
- Share of establishments that are small: 98.2%
- 2021 population: 5,855
#13. Huron County
- Total small business establishments: 887 (28.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 31,354
#12. Keweenaw County
- Total small business establishments: 60 (28.3 per 1,000 residents)
- Share of establishments that are small: 96.8%
- 2021 population: 2,118
#11. Cheboygan County
- Total small business establishments: 742 (28.8 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 25,735
#10. Iron County
- Total small business establishments: 347 (30.0 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 11,576
#9. Luce County
- Total small business establishments: 163 (30.5 per 1,000 residents)
- Share of establishments that are small: 98.8%
- 2021 population: 5,337
#8. Oakland County
- Total small business establishments: 39,069 (30.7 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 1,271,891
#7. Dickinson County
- Total small business establishments: 804 (31.2 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 25,795
#6. Charlevoix County
- Total small business establishments: 843 (32.2 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 26,215
#5. Otsego County
- Total small business establishments: 817 (32.2 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 25,351
#4. Leelanau County
- Total small business establishments: 771 (34.1 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 22,630
#3. Grand Traverse County
- Total small business establishments: 3,431 (35.7 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 96,013
#2. Mackinac County
- Total small business establishments: 449 (41.2 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 10,899
#1. Emmet County
- Total small business establishments: 1,524 (44.5 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 34,280
