Are you curious about the state of small business in Connecticut.
I have curated, vetted and listed an up to date stat on small businesses operating in connecticut.
These statistics include every relevant piece of information on small businesses in 2023.
If you own a business or planning to have one or you are just curious about small business statistics in Connecticut, you will find all the valuable information right here.
Check it out!
General Business Statistics for Connecticut
- Connecticut small businesses employed 745,085 people, or 48.5% of the private workforce, in 2017 (Source: SUSB)
- In the fourth quarter of 2018, 2,228 establishments started up, generating 7,589 new jobs in Connecticut. Startups are counted when business establishments hire at least one employee for the first time. (Source: BDM)
- In the same period, 2,207 establishments exited, resulting in 6,087 jobs lost. Exits occur when establishments go from having at least one employee to having none and then remain closed for at least one year. (Source: BDM)
- Connecticut’s gross state product (GSP) in 2022 reached $250.2b, with a growth of 0.2% over the 5 years to 2022. Businesses in Connecticut employed a total of 1,964,814 people in 2022, with average annual employment growth over the past five years of -0.6%
- The top three sectors by total employment are Finance and Insurance, Real Estate and Rental and Leasing, and Manufacturing, while the unemployment rate across the state in 2022 was 4.3%, which ranks it 42nd out of 50 states
- Major sectors by employment in Connecticut include Healthcare and Social Assistance, Educational Services, and Retail Trade, which employed 340,984, 239,730, and 215,564 people in 2022, respectively
- Small businesses created 972 net jobs in 2019. Firms employing 20 to 99 employees experienced the largest gains, adding 1,588 net jobs. The largest losses were in firms employing 100 to 499 employees, which lost 1,331 net jobs. (Source: BDM)
- Private-sector employment decreased by 17.6% during the 12-month period ending in April 2020. This was below the increase of 0.2% during the prior 12-month period. (Source: CES)
- The median income for self–employed individuals at their own incorporated businesses was $60,584 in 2018. For self–employed individuals at their own unincorporated firms, the median income was $31,786. (Source: ACS)
- In April 2020, unemployment rate was 7.9%, up from 3.7% in April 2019. This was below the April 2020 national unemployment rate of 14.7%. (Source: CPS)
- In 2022, Connecticut’s GDP reached $250.2b, representing an increase of 0.2% from 2021. Connecticut’s GDP has grown at an annualized rate of 1.8% over the five years to 2022. Moreover, Connecticut’s trailing five-year GDP growth ranks it 43rd out of all 50 US states
- In the fourth quarter of 2019, Connecticut grew at an annual rate of 0.9%, which was slower than the overall US growth rate of 2.1%. Connecticut’s 2019 overall growth rate of 1.6% was up from the 2018 rate of 0.5%. (Source: BEA)
- The largest industries by revenue in Connecticut are Health & Medical Insurance, Life Insurance & Annuities, and Aircraft, Engine & Parts Manufacturing, which generated $81.6b, $68.4b, and $52.7b in 2022
Global Small Business Statistics
- SMEs represent about 90% of businesses and more than 50% of employment worldwide
- According to the Small Business Administration, small companies create 1.5 million jobs annually and account for 64% of new jobs created in the US (Fundera, 2019)
- Millennials and Gen Zers are 188% more likely to have the aim of creating a side business, compared to Baby Boomers or traditionalists (Salesforce, 2019)
- More than 20% of small enterprises fail in the very first year, and nearly 50% of small startups fail within the first five years (Bureau of Labor Statistics, 2021)
- Over 90% of the business population represents small- and medium-sized businesses also known as SMEs (SalesForce, 2019)
- 29% of respondents said that they were opening their own business because they wanted to be their own boss (Guidant Financial, 2021)
- Over 70% of US small businesses shut down in March 2020 due to COVID-19. More than 60% of these small businesses that closed were due to the government or health authority orders
- More than half (51%) said they have increased the interactions they have with their clients over the internet. Additionally, 36% of personal businesses that use online tools are now also doing all their sales online
- 28% of these small business owners say cash flow will be their biggest challenge in the near future, followed by a lack of consumer demand
- 52% of respondents stated that the most important problem for small businesses is labor quality (CNBC, 2019)
- Formal SMEs contribute up to 40% of national income (GDP) in emerging economies
- The International Finance Corporation (IFC) estimates that 65 million firms, or 40% of formal micro, small and medium enterprises (MSMEs) in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending
- East Asia And the Pacific account for the largest share (46%) of the total global finance gap and are followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%)
- 64% of surveyed small businesses use social media in their marketing strategy (The Manifest, 2019)
- After social media marketing, the next most popular method of advertising is online marketing (49 %), followed by print marketing (36 %) and TV (22 %).
Top 10 Small Business Statistics in Connecticut
1: Percentage of Small Businesses
Currently, 355,596 small businesses in Connecticut represent 99.4% of all businesses in the state.
According to the Connecticut Department of Revenue, a qualified small business is defined as a corporation, limited liability company, partnership, or other business entity with at least two full-time equivalent employees who are Connecticut residents and whose sole responsibilities are not administrative, and conduct at least a portion of its operations in Connecticut.
2: Employment by Small Businesses in Connecticut
Approximately 739,870 were employed by small businesses in the state and represented 48.4% of all employees in the state in 2018. The minimum wage is expected to reach $15 per hour by June 2023.
3: Size of Small Businesses
Connecticut accounted for 51,217 of all new business applications submitted nationwide between January 2021 and January 2022 (5.8 million), ranking 20th among states. However, when adjusting for population, Connecticut had 1,437 applications per 100,000 residents, which was lower than the national average, and ranked 23rd among states.
4: Small Business Ownership by Gender
In Connecticut, there are currently 156,000 small businesses owned by men without employees and 43,797 more with employees. There are 111,000 women-owned small businesses with no employees and 11,409 women-owned small businesses with employees.
5: Small Business Statistics by Industry
The professional, scientific, and technical services sectors account for 56,104 of the 355,596 small businesses in Connecticut. They are the largest sectors in the state, followed by real estate, rental, and leasing (39,987), and construction (39,076).
Mining, quarrying, and oil and gas extraction are the smallest acknowledged industries in the state, with only 96 small businesses operating across these industries.
6: % of Exposure to COVID-19
Connecticut has the 33rd highest economic exposure to COVID-19 in the US, based on the % of employees working in industries with a high or medium-high degree of exposure to COVID-19. 47% of all employees, or 953,443 people, work in industries with a high or medium-high degree of economic exposure to COVID-19. Also, 9% of all Connecticut employees, or 190,766 people, work in industries with a low or medium-low degree of economic exposure to COVID-19.
7: Small Business Export Percentage
Connecticut enterprises exported items totaling $15.3 billion in 2019. Approximately 4,968 (or 88.0%) of those exporters were small enterprises. These firms shipped items worth $7.1 billion, accounting for 46.4% of total exports by recorded businesses.
8: Small Business Financing
Connecticut firms with revenues of $1 million or less received $892 million in loans from reporting banks in 2019. Total reported new lending to firms with loans of $100,000 or less was $1.2 billion, while total reported new lending to businesses with loans of $1 million or less was $2.7 billion.
9: GDP Size
In 2022, Connecticut’s GDP reached $250.2b, representing an increase of 0.2% from 2021. Connecticut’s GDP has grown at an annualized rate of 1.8% over the five years to 2022. Moreover, Connecticut’s trailing five-year GDP growth ranks it 43rd out of all 50 US states
10: Small Business Taxes
Connecticut, like nearly every other state, taxes corporate revenue. This is referred to as a corporate business tax. Business tax is calculated in a variety of ways, including a flat 7.5% of net income and a minimum tax of $250. Failure to comply with the tax on time could attract hefty fines.
Conclusion
Small businesses in Connecticut play an important role and contribute to the expansion of the economy.
With the use of this Small Business Statistic, every aspiring business owner in Connecticut can better comprehend the opportunities and obstacles of the business ecosystem.
Looking for more? Check out more statistics here.
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