The Indiana economy is highly reliant on the manufacturing industry. According to the Bureau of Labor Statistics, 17% of the state’s nonfarm workforce is employed in the manufacturing industry. Some major exports from the industry include industrial machinery, medical equipment, motor vehicles, and pharmaceutical products.
The economy is slowly transitioning from a manufacturing and agricultural hub to more tech-driven industries, and with a low cost of living and a large technically skilled labor force, entrepreneurs have adequate resources to set up shop in the state. Currently, small businesses (SMBs) account for close to 100% of all businesses in the state.
Here is a list of small business statistics from the state of Indiana:
- There are a total of 521,656 small businesses in Indiana—99.4% of all businesses in the state.
- SMBs employ approximately 1.2 million people, representing 44.4% of all employees in Indiana.
- There are two major obstacles for SMB owners in Indiana:
- Access to capital is mostly concentrated in large cities and the coastal region.
- Indiana’s isolation from large markets in the US, like those in New York and Florida.
- Indiana has a flat personal income tax rate of 3.3%, a flat corporate income tax rate of 8%, and a 7% sales tax.
- The state has a modest unemployment rate of 5%. Due to the availability of highly skilled manpower, the competition is not exceptionally fierce for entrepreneurs looking for top-notch talent.
- Small businesses created 37,485 jobs in 2019. Firms that employ fewer than 20 people generated 27,304 new jobs, while those with 100–499 employees added 1,473 jobs.
- Self-employed individuals running their own incorporated businesses have an average median income of $47,376. Those who run unincorporated businesses have a median income of $25,502.
- State law requires that every new Indiana LLC designates an Indiana registered agent that will be available during regular business hours at a physical address within the state.
- In the fourth quarter of 2018, 3,620 businesses started up, generating 12,748 new jobs in Indiana. In the same period, 13,446 jobs were lost after 3,425 small businesses closed.
- There are 7,167 small business exporters in Indiana, accounting for 15.1% of the state’s $35.6 billion worth of export revenue.
- Six industries have the largest share of small business employees:
- Manufacturing (174,314)
- Health care and social assistance (171,873)
- Accommodation and food services (163,487)
- Retail trade (112,768)
- Construction (107,338)
- Professional, scientific, and technical services (78,361)
- To form an LLC, you need to file Articles of Organization with the Indiana Secretary of State. The filing fee is between $95 and $100.
- Out of the over 500,000 small business owners in Indiana, 38,852 are self-employed minorities.
- In 2018, lending institutions reporting under the Community Reinvestment Act issued 84,494 loans under $100,000, valued at $1.4 billion.
- The state allows small business owners to claim many business expenses as tax deductions or write-offs on individual income tax returns filed with the state.