New Hampshire Small Business Statistics

New Hampshire is a region in New England and the 5th smallest state in the US by territory. It boasts easy access to both resorts and seaside areas and to active metropolitan areas such as Boston and Quebec.

Though not big, the state economy is strong. It’s mainly driven by manufacturing, real estate, and professional services. In the meantime, a lower tax burden and attractive state grants make it a welcoming spot for small enterprises (SMEs) that are at the core of the economic landscape nationwide.

If you plan to start your private venture in the White Mountain State, check our quick small business stats for this state first.

Key New Hampshire Small Business Stats

• In 2020, New Hampshire's GDP experienced a noticeable drop to $75.54 billion marking the pandemic economic recession;
• In 2021, the gross domestic product of New Hampshire has jumped up to $81.93 demonstrating a 10% growth as compared to 2020 and even showing a significant increase against the pre-pandemic period (Statista);
• In 2022, GDP is $84 billion, and the annualized 5-year growth rate stands at 2.5% putting New Hampshire in the 5th position under this metric nationwide (IBISWorld);
• About 40% of the state GDP is generated by three key industries including real estate, manufacturing, and professional, scientific, and technical services;
• Sectors with the highest revenues in 2022 are property insurance, car dealers, and public schools that have earned $8.6, $8.1, and $6.3 billion accordingly;
• 99% of the state business landscape is maintained by small private enterprises that account for 138.199 in 2022;
• In 2020, 2.477 SMEs standing for 85% of the state exporters generated 33% of the total export revenues in the state worth $5.3 billion (Census data);
• The highest SME count is observed professional service and construction sectors enlisting 21.568 and 20.156 entities accordingly;
• The lowest SME activity is in the company management sector, with only 75 private firms operating in it;
• Between March 2020 and March 2021, the net gain of new establishments in the SME sector was 1.574 while the employment opportunities decreased by 12.641 jobs;
• In general, small enterprises provide jobs to 308.296 state residents and maintain 49.7% of the entire employment market in New Hampshire;
• The three biggest employer sectors are:
  • Accommodation and food services: 45.987 workers;
  • Healthcare and social assistance: 45.899 workers;
  • Retail trade: 32.597 workers.
• The minimum wage rate in New Hampshire stands in line with the federal minimum at $7.25 per hour and hasn’t changed for the recent decade;
• In the meantime, the average hourly salary in New Hampshire is $18.56 per hour which converts to $36.192 of a median annual income;
• The unemployment rate in the state is 2.4% which is far below the federal average of 3.7%.

Top 10 Industries for Small Businesses in NH

NH Small Business Demographics

• Small enterprises owned by women total 46.776 companies accounting for 40.3% of SMEs in the state, and around 11% of these entities have employee payrolls;
• Men-owned SMEs number 79.176 entities and 20% of them are job-givers;
• Small private firms equally controlled by men and women represent only 5% of the total SME count;
• Ladies ensure 47.6% of the SME workforce in the state;
• 8.5% of SMEs are possessed by military veterans, and veteran employees account for 6.2% of the state manpower;
• International self-employed New Hampshire residents represent only 5.9% of SMEs in the state and immigrant workers account for 8.6% of the entire labor pool;
• The SME ownership is distributed between ethnic groups in the following way (Census data):
  • Hispanics: 2.661;
  • Black Americans: 2.300;
  • Asians: 1200;
  • American Indians and Alaska Natives: 100.

NH Small Business Formation

• To form a New Hampshire LLC or corporation, you should register the company formation documents with the Secretary of State and settle a state filing fee, which is $100 for formation and corporation alike;
• The state law calls legal entities to maintain a New Hampshire registered agent that will take care of your business mail and to file a state report on an annual basis that costs $100;
• The personal income tax in the state is calculated under a flat rate of 5% and is charged only over interest and dividend incomes;
• A tax on corporate incomes is also levied at a flat rate of 7.6%;
• For corporate taxpayers, the state also has the Business Profit Tax (BPT) and the Business Enterprise Tax (BET) in place;
• The BPT is applied to corporations with gross receipts above $50.000 at an 8.5% rate;
• The BET rate is 0.75%. It’s applied to corporations with gross receipts over $150.000 or an enterprise value tax base over $75.000;
• New Hampshire has neither state nor local sales taxes for commercial entities.

References

1. New Hampshire Small Business Economic Profile 2022
2. New Hampshire Small Business Statistics (2022)
3. New Hampshire - State Economic Profile
4. How Many Small Businesses Are There in New Hampshire