Kansas Small Business Statistics

Few Americans know that Kansas began to develop long before its official formation on January 29th, 1861. This is especially true for the state's economy and industry sectors.

Thanks to its agriculture, Kansas was able to distinguish itself and gain an excellent reputation among all other U.S. states. Consequently, allied industries, including flour milling, quickly began to emerge in the state.

For the past several years, Kansas has consistently ranked as one of the best states to start a small business. The state government helps aspiring entrepreneurs create new ventures by reducing taxes, free services and guidelines, special development programs, etc.

The state has a friendly business climate, excellent infrastructure, low and competitive tax incentives, a high quality of life, and a cost of living that is among the best in the Midwest.

Here are some interesting small business statistics in the state of Kansas in 2022.

Kansas Small Business Statistics Key Takeaways

• In 2022, with a population of 2,939,861, Kansas has an annual growth rate of 0.2% over the last 5 years. The state ranks 41st among all 50 states;
• The state's GSP (gross state product) reached $162.2 billion in 2022, which is an increase of 0.9% over the last 5 years;
• In 2022, Kansas businesses employed 1,373,295 workers, with an average annual growth rate of -0.1% over the last 5 years;
• Manufacturing, Real Estate & Rental & Leasing, and Healthcare & Social Assistance, are the top 3 sectors for total employment. The state’s unemployment rate in 2022 is 2.6%;
• As for the state's GDP (gross domestic product), in 2022, the state's output reached $162.2B, which is a 0.9% increase compared to 2021;
• Over the last 5 years, however, the sum of value added from all industries in the state has declined by -0.3% this year. Such GDP growth ranks Kansas 37th among all other states.

According to ForeignUSA.com the latest small business statistics in Kansas are as follows:

• There are 258,384 small businesses in the state, which accounts for 99.1% of all businesses in the state;
• There are 605,147 small business employees in Kansas, which is 50.5% of the state's employees;
• In 2019, Small Businesses in the state added 5,784 new jobs;
• Kansas is a diverse state with 20,356 self-employed minorities in the state;
• International trade in the state is strong with 2,770 small business exporters;
• There are 31,208 professional, scientific & technical services for SMEs in the state;
• There are 27,720 SMEs in retail trade, which makes Kansas the 2nd largest state in this regard;
• As for establishment openings, SMEs accounted for 8,306 openings and 7,241 closings.
• As for employment statistics, opening and expanding the state establishments added 112,254 jobs, while closing and contracting establishments lost 151,837, for a net decrease of 39,583 jobs. SMEs gained 78,787 jobs and lost 96,082, for a net decrease of 17,295 jobs. 

Also, according to the latest 2022 Small Business Profile on Kansas from the U.S. Small Business Administration, Office of Advocacy, in terms of Establishments between March 2020 and March 2021, 8,875 Kansas establishments opened and 7,906 closed, for a net increase of 969. Employment expanded at 16,853 establishments and contracted at 19,984.

Top 10 Kansas Industries by Revenue

Kansas' Aircraft, Engine & Parts Manufacturing, Corn, Wheat & Soybean Wholesaling, as well as Wireless Telecommunications Carriers industries, have generated $23.1B, $17.6B, and $16.1B in revenue respectively in 2022. As for other industries of the state with the most revenue, they are listed in the table below.

Kansas Employment Statistics for 2022 (Seasonally Adjusted)

Kansas Top 10 Industries Statewide by Establishments in Q4 2021

Kansas Top 10 Industries Statewide by Employment in Q4 2021

Kansas Small Business Incentives & LLC Formation Statistics

If you register a new business entity in Kansas, you will be able to take advantage of the state's developed transportation network, experienced workforce, various grant/loan types, tax credits, favorable electricity rates, and marketing opportunities as follows:

• New businesses in Kansas are eligible for FTZ (Foreign Trade Zones) benefits. Namely, the program allows your new company to get a quota and duty-free entry point under customs supervision. Plus, this benefit is valid for an unlimited period;
• All private eligible businesses that create/retain permanent job places in the state can get the advantage of economic development grants (the gap financing program), which vary from $35,000 to $750,000;
• The United States Treasury provides funding to newly registered businesses in the state through the State Small Business Credit Initiative (SSBCI). Depending on the type of program you opted for, such funds can vary from $25,000 to $500,000.

If you’re planning to open a business in Kansas, you should consider starting a limited liability company (LLC).

Due, to the limited personal liability of the owner, less paperwork, and tax advantages, this is the most popular business structure in the state. Here’s a list of things to consider before registering a new company:

• To open an LLC in Kansas by mail, you will need to pay a $165 filing fee. Online applications cost $160. The same goes for foreign LLCs in the state;
• The annual report filing fee in the state is $50 (for online applications) or $55 (for applications by mail);
• The average cost of setting up an LLC in the state is from $210 to $220;
• Kansas does not require a general business license. However, depending on the industry of your LLC, its location, and the type of business you run, the cost of specific business licenses for LLCs in Kansas can vary from $100 to 800$ on average;
• In Kansas, the LLC name reservation fee is $30 (online) or $35 (by mail);
• To obtain certified copies of your registration documents, you will need to pay $15 (+ $1 for each page) to the Kansas Secretary of State;
• To get your Certificate of Good Standing, you will need to pay $10 (when requesting online through the Secretary of State's website) or $15 (for a physical copy by mail);
• The Kansas corporate income tax is a flat rate of 4% of federal taxable income. An additional 3% surtax is charged on taxable income in excess of $50,000;
• Self-employed entrepreneurs running incorporated businesses in the state have an average income of $51,889. That’s $25,829 more than those running unincorporated businesses;
• There are 2,770 small firms in the export business. They are responsible for 25.6% of the state’s $10.2 billion worth of export revenue;
• SME commercial and industrial loans increased by 2.1% in Q1, 2020. This is partly due to the effects of the COVID-19 pandemic;
• 2,009 businesses closed shop in the fourth quarter of 2018, resulting in 7,038 lost jobs. In the same period, 1,863 establishments started up, generating 7,125 new jobs.

For more information on all the information and resources, you may need to start an LLC or other business entity in Kansas, visit Kansas Business One Stop.

Kansas Top 10 Industries Statewide by Total Wages in Q4 2021

Kansas Top 10 Industries Statewide by Average Weekly Wage in Q4 2021

The top 3 industries with the largest number of small businesses are as follows:

• Professional, scientific, and technical services (31,208);
• Retail Trade (27,720);
• Construction (27,514).

In 2018, while reporting under the Community Reinvestment Act, lending institutions in Kansas issued 38,548 loans under $100,000, a total value of $567.0 m.

Kansas Small Business Statistics by Demographics:

• In 2018, women made up 46.6% of workers and owned 42.7% of SMEs;
• In 2018, veterans made up 5.9% of workers and owned 7.1% of SMEs;
• In 2018, Hispanics made up 10.9% of workers and owned 6.0% of SMEs;
• In 2018, racial minorities made up 12.6% of workers and owned 7.2% of SMEs.

Top 10 Kansas-Based Companies by Generated Revenue

Top 10 Kansas-Based Companies by Employment

As for employment statistics in the state, in 2022, State of Kansas, Walmart Inc., and the University of Kansas are the top 3 companies that employed 151,767, 22,000, and 10,000 employees respectively in 2022. The remaining 7 companies, headquartered in the state, and their employment percentage are listed below in the table.

Sources:

1. Kansas Business One Stop 
2. Kansas Department of Labor
3. IBISWorld
4. Lincoln Business Guides 
5. CNBC
6. Kansas Business Center 
7. ForeignUSA 
8. CDN Advocacy
9. IncParadise