(Stacker) — 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 Texas 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 Texas 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. Dimmit County
- Total small business establishments: 214 (25.2 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 8,479
49. Comal County
- Total small business establishments: 4,434 (25.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 174,891
48. Collin County
- Total small business establishments: 28,274 (25.4 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 1,114,450
47. Smith County
- Total small business establishments: 6,061 (25.6 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 237,114
46. Winkler County
- Total small business establishments: 189 (25.6 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 7,373
45. Stephens County
- Total small business establishments: 243 (25.8 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 9,434
44. Archer County
- Total small business establishments: 225 (25.9 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 8,684
43. McCulloch County
- Total small business establishments: 197 (26.2 per 1,000 residents)
- Share of establishments that are small: 98.0%
- 2021 population: 7,532
42. Eastland County
- Total small business establishments: 469 (26.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 17,834
41. San Saba County
- Total small business establishments: 154 (26.4 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 5,824
40. Colorado County
- Total small business establishments: 551 (26.8 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 20,592
39. Washington County
- Total small business establishments: 963 (26.8 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 35,898
38. Dallas County
- Total small business establishments: 69,637 (26.9 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 2,587,954
37. Knox County
- Total small business establishments: 90 (27.2 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 3,307
36. Upton County
- Total small business establishments: 89 (27.5 per 1,000 residents)
- Share of establishments that are small: 97.8%
- 2021 population: 3,241
35. Ward County
- Total small business establishments: 307 (27.6 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 11,111
34. Burnet County
- Total small business establishments: 1,430 (28.0 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 51,080
33. Hamilton County
- Total small business establishments: 233 (28.3 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 8,238
32. Kerr County
- Total small business establishments: 1,509 (28.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 53,136
31. Hansford County
- Total small business establishments: 146 (28.4 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 5,138
30. Reeves County
- Total small business establishments: 375 (28.8 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 13,002
28. Dallam County
- Total small business establishments: 210 (29.2 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 7,188
28. Baylor County
- Total small business establishments: 101 (29.2 per 1,000 residents)
- Share of establishments that are small: 98.1%
- 2021 population: 3,456
27. Edwards County
- Total small business establishments: 42 (29.4 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 1,431
26. Brewster County
- Total small business establishments: 282 (29.8 per 1,000 residents)
- Share of establishments that are small: 99.3%
- 2021 population: 9,459
25. Throckmorton County
- Total small business establishments: 45 (29.8 per 1,000 residents)
- Share of establishments that are small: 93.8%
- 2021 population: 1,508
24. Potter County
- Total small business establishments: 3,492 (30.0 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 116,538
23. Travis County
- Total small business establishments: 39,875 (30.5 per 1,000 residents)
- Share of establishments that are small: 99.7%
- 2021 population: 1,308,544
22. Glasscock County
- Total small business establishments: 35 (30.7 per 1,000 residents)
- Share of establishments that are small: 94.6%
- 2021 population: 1,142
21. Fayette County
- Total small business establishments: 763 (30.9 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 24,669
20. Jeff Davis County
- Total small business establishments: 61 (31.1 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 1,959
19. Young County
- Total small business establishments: 563 (31.4 per 1,000 residents)
- Share of establishments that are small: 99.6%
- 2021 population: 17,911
18. Real County
- Total small business establishments: 89 (31.7 per 1,000 residents)
- Share of establishments that are small: 98.9%
- 2021 population: 2,806
17. Blanco County
- Total small business establishments: 378 (31.8 per 1,000 residents)
- Share of establishments that are small: 99.5%
- 2021 population: 11,890
16. Gregg County
- Total small business establishments: 4,035 (32.5 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 124,052
15. Kimble County
- Total small business establishments: 142 (32.6 per 1,000 residents)
- Share of establishments that are small: 98.6%
- 2021 population: 4,350
14. Stonewall County
- Total small business establishments: 40 (33.1 per 1,000 residents)
- Share of establishments that are small: 88.9%
- 2021 population: 1,208
13. Kendall County
- Total small business establishments: 1,566 (33.4 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 46,851
12. Wheeler County
- Total small business establishments: 166 (33.8 per 1,000 residents)
- Share of establishments that are small: 98.2%
- 2021 population: 4,905
11. Midland County
- Total small business establishments: 5,754 (34.2 per 1,000 residents)
- Share of establishments that are small: 99.9%
- 2021 population: 168,206
10. Irion County
- Total small business establishments: 54 (35.3 per 1,000 residents)
- Share of establishments that are small: 94.7%
- 2021 population: 1,531
9. Sutton County
- Total small business establishments: 116 (35.3 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 3,284
8. Shackelford County
- Total small business establishments: 114 (35.9 per 1,000 residents)
- Share of establishments that are small: 98.3%
- 2021 population: 3,177
7. Sterling County
- Total small business establishments: 50 (36.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 1,382
6. Reagan County
- Total small business establishments: 118 (36.6 per 1,000 residents)
- Share of establishments that are small: 99.2%
- 2021 population: 3,228
5. Ochiltree County
- Total small business establishments: 359 (36.8 per 1,000 residents)
- Share of establishments that are small: 99.4%
- 2021 population: 9,763
4. Hemphill County
- Total small business establishments: 122 (36.8 per 1,000 residents)
- Share of establishments that are small: 96.8%
- 2021 population: 3,315
3. Mason County
- Total small business establishments: 146 (37.2 per 1,000 residents)
- Share of establishments that are small: 100.0%
- 2021 population: 3,929
2. Crockett County
- Total small business establishments: 116 (38.5 per 1,000 residents)
- Share of establishments that are small: 99.1%
- 2021 population: 3,015
1. Gillespie County
- Total small business establishments: 1,122 (41.1 per 1,000 residents)
- Share of establishments that are small: 99.8%
- 2021 population: 27,282
This story originally appeared on altLINE and was produced and distributed in partnership with Stacker Studio.