Delaware Small Business Statistics

Over 65% of Fortune businesses are registered in Delaware, thousands of entrepreneurs are choosing this state as a place to run a company, and the number of small enterprises continues to grow strongly here. 

What is the phenomenon of Delaware? Why is it so attractive to both aspiring and experienced entrepreneurs? Keep reading to get the answers backed up by statistical data!

Key Delaware Small Business Stats

Basic data about small businesses in Delaware will give you a clear understanding of the big picture. 

• Delaware could be considered the business capital of the United States;
• More than 90% of the 2022 initial public offerings were listed in the state;
• The annual startup survival rate in the state shows positive figures – 78.8%;
• Annual growth of small companies in the state is 3.4%, which is competitive;
• Delaware is home to world-renowned companies like Amazon, Google, Tesla, and others;
• About 80,000 of the entities registered in the state are small businesses. Large enterprises make up just 1.6% of the total;
• The number of small companies is growing at an average rate of 6% per year;
• About 2,000 companies export goods to other states or countries. More than 80% of them are small businesses;
• More than 14,000 of Delaware's small businesses are run by minorities;
• Among company owners in the state, nearly half as many women as men;
• Firm owners in Delaware may qualify for a $100 million grant to help cope with the aftermath of COVID-19.

Delaware Small Business Statistics: Employees

• On average, unemployment rate is declining by 0.5 percent annually;
• Unemployment rate are more positive in Delaware than the national average;
• Out of all the companies formed in the state, only 20,000 of them have employees;
• Small businesses are creating more and more new jobs. In 2015, such companies offered about 6,000 new vacancies, and in 2019, the number was 4,776;
• About 18% of the state's population is employed by such companies. That's over 180,000 positions;
• About $50,000 is the average annual wage of an employee involved in small business in Delaware;

All firms in Delaware can be divided into three groups in terms of the employees number:

Small Businesses in Delaware: Data by Industry

• The top industries that generate the most new jobs are health care and social assistance, housing, food service, and retail trade;
• The export industry is not particularly booming in the state. There are less than 2,000 firms involved in it;
• Real estate and leasing companies are well represented in the state. More than 10,000 such firms conduct business here;
• The mining, oil, and gas sector generates the fewest number of positions. This fields employ fewer than 100 people in the entire state;
• Nearly half the employees of small companies in Delaware belong to the healthcare industry. This is a minimum of 30,000 jobs;

Employment by Industry

Tax Benefits in Delaware 

• Delaware and Nevada are considered tax shelters in the country (the most tax-friendly locations to run a business). This is one of the main reasons for the influx of new companies of various sizes to these states;
• There is no sales tax in Delaware;
• The state also does not levy tax on the personal property of business founders;
• If you form a corporation, you will have to pay a corporate tax of 8.7% on your income;
• Also, you are expected to pay franchise tax if you form an LLC or corporation. The rate will be an average of $225;
• Non-profit organizations are exempt from paying franchise tax.

Conclusion 

You've probably heard many glowing reviews about running a business in Delaware. Now, having your impression backed up by statistics, you can make an informed decision about whether to register a business here.

The main reasons for this could be tax benefits, the effective operation of the Court of Chancery, legal protection, and the positive attitude of investors to companies registered in Delaware.

References

1. https://www.upcounsel.com/small-business-statistics-for-every-state
2. https://coloradosun.com/2020/10/13/ppp-forgiveness-paycheck-protection-program-pandemic-stimulus/
3. https://www.forbes.com/advisor/business/incorporating-in-delaware/
4. https://taxfoundation.org/state/delaware/
5. https://www.dwt.com/blogs/startup-law-blog/2020/07/why-do-so-many-startups-form-corporations-delaware