Maine Small Business Statistics

Maine's GDP over the past 10 years has reached $62.7b. Thus, the economic condition in the state is on the rise, drawing business startups to the area.

This is due to the development of manufacturing here. Manufacturers of everything from paper to leather goods have flocked to the state to give it a new spin. Not only civilian products are made here, but submarines and naval vessels for the military are built.

In terms of GDP, Maine ranks 44th among all the states. That's 0.33% of the total U.S. GDP.

But the main engine of progress is small businesses in Maine. More than 99% of all entities in the state are small companies. Their owners find the state attractive enough to do business in and the community of business people to be rather strong.

Let's take a look at the statistics surrounding this issue to get a better idea of the landscape.

Maine Small Business Stats: Key Data

• In Maine, there are over 147,000 SMEs;
• The net annual increase in the number of entities is slightly more than 200 companies. For example, in 2019-2020, 4,595 SMEs were opened and 4,384 were shut down here;
• One in nine residents of the state has a business here;
• Women own 40.2% of all firms in the state while men own 59.8% of all entities;
• Hispanics and other minorities hold 4.4% of all companies in Maine;
• SMEs make up over 99% of all entities in the state; 
• LLC is one of the most popular business structures in the state;
• To register a firm in Maine, you will need to appoint a registered agent ($0-$200) and file Articles of Organization ($175);
• Self-employed people in Maine earn about $49,000 in income. That's only 3,777 people among all SME owners in the state;
• The most popular industries in the state are listed in the table below. These five sectors account for 177,000 employees:

• More than 1,500 companies in Maine are involved in exports;
• In Maine, there is a corporate income tax. The rate will depend on the amount of your company's income:
  • Income up to $25,000 - 3.5% tax;
  • Income up to $75,000 - $875 plus 7.93% tax on amounts over $25,000;
  • Income up to $250,000 - $4,840 plus 8.33% tax on amounts over $75,000;
  • Income greater than $250,000 - $19,418 plus 8.93% tax on amounts over $250,000.
• However, Maine does not have a franchise tax;
• Maine is considered an excellent state for startups with a business survival rate of 88.13% on new businesses one year after opening.

Maine Small Business Stats: Employees

• The unemployment rate in the state has been steadily declining. Today, it is 3.60%, although last year, it was 4.40%;
• There are almost 300,000 employees employed by small companies. That's nearly 57% of all employees in the state;
• The largest number of small business employees work in the following areas:

• In 2019, new and emerging businesses opened 45,615 vacancies, while shutdown businesses cut 45,133 positions. The net increase was more than 480 jobs;
• More than 48% of the state's employees are women. Men make up just over 51% of them;
• Hispanics and other minorities make up 5.3% of the state's workforce;
• Companies with few employees (up to 20 workers) generate the largest number of positions overall. While such entities offer nearly 5,000 jobs a year, businesses with large numbers of employees offer only 200-300 openings a year.

Sources

1. https://cdn.advocacy.sba.gov/wp-content/uploads/2021/08/30142530/Small-Business-Economic-Profile-ME.pdf
2. https://apps.bea.gov/iTable/?acrdn=1&isuri=1&reqid=70&step=1#
3. https://www.mainebiz.biz/article/from-the-editor-small-businesses-are-maines-economic-backbone
4. https://advocacy.sba.gov/2020/05/20/2020-small-business-profiles-for-the-states-and-territories/