Indiana is an industrial state, with an economy greatly relying on manufacturing sectors. As
IBISWorld reports, the industries with the highest revenues in 2022 are steel and iron manufacturing and trailer and motor-home manufacturing generating $28.1 and $22.7 billion respectively.
No.14 in the CNBC “
Top States for Business” rating in 2022 and No.1 manufacturing state in the nation, the Hoosier state stands out for fiscal stability, lower cost of living, and lower business taxes.
Hosting eight Fortune 500 companies, it also has a whole lot of small enterprises (SMEs) on its economic map.
If you are going to join the SME community of Indiana and want to learn more about its business potential and the opportunities you have, check our small business statistics for the state.
Key Indiana Small Business Stats
In 2022, the gross domestic product of Indiana is $355.9 billion showing a 1.8% growth as compared to $346.26 billion reported by Statista for 2021; Top GDP contributors are manufacturing, real estate, and healthcare sectors accounting for 53.3% of the total GDP amount; 84% of IN exporters are smaller companies and they maintain nearly 14% of the entire state export worth $33.4 billion; The state hosts 534.640 SMEs maintaining 99.4% of all businesses; The sectors with the highest SME count are construction and professional, scientific, and technical services sectors, with 63.493 and 61.169 companies in them accordingly; Utility and company management sectors are the least popular among SMEs, with only 375 and 339 businesses operating in them; Private firm sector employs 1.2 million Hoosiers supporting 43.8% of the total employment market in the state; About 18% of SMEs employ from 1 to 19 workers and 3% have up to 500 employees; Healthcare, manufacturing, and accommodation and food service sectors have the biggest shares among SME employers, with 174.644, 173.449, and 165.626 workers engaged in them accordingly; A minimum wage rate in IN coincides with the federal minimum of $7.25; An average salary per hour is $23.32 resulting in a $48.499 average annual income in the state; Self-employed owners of registered entities report a median income of $47.374 while that of non-registered business owners is $25.502; IN unemployment rate is 2.2% standing far below the federal average of 3.7%.
Top 10 Industries for Small Businesses in IN
Industry Company Count Other services (excluding public administration) 65.301 Construction 63.493 Professional, scientific, and technical services 61.169 Real estate, rental, and leasing 51.796 Retail trade 51.390 Administrative, support, and waste management 48.158 Transportation and warehousing 45.605 Healthcare and social services 38.576 Entertainment and recreation 25.290 Accommodation and food services 16.416
IN Small Business Demographics
Women own 42.5% of smaller companies in the state and nearly 10% of them use hired workforce; Male-owned SMEs account for 290.237 companies and 22% of them have employee payrolls; Only a bit more than 5% of SMEs in the state are owned by men and women together; Ladies maintain 47.3% of the employment market in the state and account for 13% of startup founders; Veteran-controlled private firms comprise 7% of the total SME count in IN and veterans represent 5.2% of the state employees; Based on Census Bureau data, Black Americans are the biggest ethnic group among SME owners controlling nearly 8% of smaller firms in the state; SME ownership among other racial minorities is split as follows: Hispanics: 20.010; Asians: 17.923; Native Hawaiians and Islanders: 170; American Indians and Alaska natives: 600.
IN Small Business Formation
From March 2020 to March 2021, net SME gain in the state was 4.165 entities; Over 50% of startups in the state survive a 5-year period while over 33% of businesses live over 10 years; To launch an LLC in Indiana, you just need to file the Articles of Organization with the Secretary of State and pay a one-time $100 state fee for that; All registered entities are required to designate an Indiana registered agent to stay compliant and maintain consistent contacts with state authorities via organized legal mail handling; Unlike other states, Indiana calls for LLCs and corporations to file biennial reports instead of annual statements and pay only $30; The current personal income tax rate in Indiana is 3.23% while a corporate income tax rate is fixed at 4.90%; Sales tax in Indiana is also levied at a flat rate of 7%.
Indiana Small Business Economic Profile 2022 How Many Small Businesses Are There in Indiana? Indiana Small Business Statistics (2022)