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Small enterprises (SMEs) have been the backbone of the US economy on the whole and of each state’s economy in particular. Georgia is not an exception. The Peach State takes the 6th position in the national US rating for the highest count of SMEs.
With a $600 billion GDP, the state economy is not the biggest in the country. However, being the 9th economy in the US, it’s strong enough to create a pro-business climate and make the Peach State “No.1 for Business”.
S&P credit agency assigned the highest AAA credit rating to Georgia, which alone makes it a safe place to start your entrepreneurial journey. If you are about to make it, checking essential SME stats for the state won’t go amiss.
According to a recent SBA report, the state accounts for 1.1 million SMEs, which makes nearly 99.% active enterprises in GA and 3.4% of all SMEs in the US as of 2021;
Nearly 89% of the state exporters are SMEs and privately owned companies generate 41% of the entrepreneurial profit in the GA;
Small enterprises employ 1.7 million people holding a 42.8% share in business sector employment;
Private firms employing from 20 to 100 workers dominate among SMEs in Georgia;
Despite the GA’s economy shrinking by 6.8% during the period of pandemic stagnation in 2020, the stay still shows consistent SME ingrowth in 2021, with nearly 30.000 new establishments;
Opening and expanding SMEs in GA brought 345.185 new jobs to the employment market in 2021;
An average SME payroll per employee is around $41.000 a year and SMEs maintain 37% of the total annual state payroll;
Meanwhile, an average annual income of a self-employed GA entrepreneur is $51.000 exceeding the nation’s average;
Non-employer companies prevail among SMEs in Georgia while employer entities make only about 20%;
The highest SME employment level is in the accommodation and food service sector accounting for nearly 60% of the industry employment;
The industry with the biggest number of SMEs (around 159.000 entities) is other services (excluding public administration);
As in many other states, the mining, quarrying, oil, and extraction industry is the least popular among smaller companies, with less than 250 entities in it.
Top 10 Industries for Small Businesses in GA
Other services (excluding public administration)
Professional, scientific, and technical services
Administrative, support, and waste management
Transportation and warehousing
Real estate, rental, and leasing
Healthcare and social services
Entertainment and recreation
Accommodation and food services
GA Small Business Demographics
The survey conducted by Census showed that female SME owners make up 46% of the total SME count in Georgia putting it among the top US states for women-owned small businesses;
Meanwhile, female employees account for 49% of the total GA workforce;
GA industries most favored by women-owned businesses are professional, technical, and scientific services and health care;
Veterans control 7.8% of smaller companies and represent 6% of SME employees;
Hispanics are the largest ethnic group present in GA small businesses owning 7.8% of companies and accounting for 9.2% of the total workforce;
Other racial minorities have a 36% share in GA SMEs, which is a high rate as compared to other jurisdictions, and make up to 39.6% of employees.
GA Small Business Formation Stats
Georgia is at the top of the rating of the best states for launching a business;
Starting an LLC in Georgia is as simple as filing the Articles of Organization with the state department and paying a $100 filing fee to the state;
To maintain a compliant entity, you’ll need to appoint a registered agent in Georgia and file an annual report along with a $50 report registration fee;
To run a company under a different name on the market, you’ll have to register a DBA (doing business as) or fictitious name at $150;
Many GA small companies are exposed to a buying service license that costs $50 and is to be renewed on an annual basis;
To identify your firm as a taxpayer, you’ll have to acquire a business tax ID number from the Internal Revenue Service;
A sales tax rate in GA stands at the lower side of the price range at 4%. Mind, though, that it will be further increased by a local tax rate that varies depending on the county and your business activity.