The Indiana economy is highly reliant on the manufacturing industry. According to the Bureau of Labor Statistics, 17% of the state’s non-farm 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 – 99.4% of all businesses in the state.
- SMBs employ approximately 1.2 million people representing 44.4% of all employees in Indiana.
- The two major obstacles for SMB owners are:
- 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 exited the market.
- There are 7,167 small business exporters in Idaho that account for 15.1% of the state’s $35.6 billion worth of export revenue.
- The top 6 industries with the largest share of small business employees are:
- 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 Organisation 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.