Kansas Small Business Statistics: 2026 Data and Trends

Kansas has 256,287 small businesses, and they employ nearly half the state's private workforce. Aviation, agriculture, and food processing anchor the economy, but it's the smaller firms that keep it running. Here's what the 2026 data reveals for entrepreneurs looking at the Sunflower State.

How Many Small Businesses Are in Kansas in 2026?

Small business in Kansas isn't a niche sector; it's the default. More than 99% of all businesses in the state qualify as small by SBA standards, and they account for a disproportionate share of employment relative to their size.

• There are 256,287 small businesses in Kansas, accounting for 99.1% of all businesses statewide (SBA Office of Advocacy, 2023 data).
• Kansas small businesses employ 597,069 workers, representing 49.5% of the state's private-sector workforce.
• Of those 256,287 firms, 201,488 are nonemployer businesses (sole proprietors with no payroll employees), 47,621 have between 1 and 19 employees, and 7,178 have between 20 and 499 employees.
• Between March 2021 and March 2022, 10,533 new establishments opened in Kansas and 8,004 closed, for a net increase of 2,529 establishments.
• Opening and expanding establishments added 139,226 jobs while closing and contracting ones lost 104,468, yielding a net gain of 34,758 jobs across the state.
• Women own about 43.3% of businesses in Kansas, veterans own roughly 7.0%, and Hispanic entrepreneurs own around 6.5% of firms.
• Self-employed individuals running incorporated businesses have a median income of $51,889. That's $25,829 more than those running unincorporated businesses.

Kansas Major Industries That Drive Small Business Growth

The Kansas major industry sectors define what kinds of small businesses thrive here and where the supply chain opportunities sit. Aircraft manufacturing, agriculture, and food processing generate the highest revenues, and each one supports a layer of smaller firms below it.

• Transportation equipment manufacturing (dominated by aircraft and parts) was Kansas's largest manufacturing export category in 2024, generating $3.4 billion in goods exports, ahead of food and kindred products ($3.3 billion) and computer and electronic products ($1.6 billion).
• The top revenue-generating industries in Kansas include corn, wheat, and soybean wholesaling ($23.9 billion), aircraft, engine, and parts manufacturing ($22.2 billion), farm equipment wholesaling ($18.3 billion), and meat, beef, and poultry processing ($17.3 billion).
• According to the most recent SBA data, the Kansas sectors with the largest numbers of small firms are professional, scientific, and technical services (31,151 firms), construction (28,948), and other services except public administration (27,855). Utilities has only 161 small firms.

Agriculture and Farming in Kansas

Kansas agriculture isn't just large-scale grain operations. The ripple effects through equipment dealers, logistics firms, and local services create one of the state's widest small business ecosystems.

• Agriculture and agribusiness together contribute about $76 billion to the Kansas economy and support roughly 256,080 jobs, around 14% of statewide employment, when direct, indirect, and induced effects are included (Kansas Department of Agriculture/K-State Research and Extension).
• Kansas is the nation's leading wheat-producing state and typically supplies about one-quarter of the U.S. winter wheat harvest, accounting for roughly 40% of U.S. hard red winter wheat production.
• The average farm size in Kansas is 804 acres, compared with a national average of about 446 acres in 2022. The state counted 55,734 farms and roughly 44.8 million acres of land in farms in the 2022 Census of Agriculture.

Products Manufactured in Kansas

Manufacturing drives a significant portion of the state's export profile and creates vendor relationships that small businesses depend on for contracts and subcontracting work.

• The top products manufactured in Kansas include commercial and military aircraft and parts, processed meat and grain products, petroleum products, and farm and industrial machinery.
• Kansas is home to one Fortune 500 company: Seaboard Corporation in Merriam. Large privately held firms like Koch Industries in Wichita and major employers such as Garmin and Spirit AeroSystems anchor supply chains that support thousands of small Kansas businesses.

Kansas Economy Facts for Small Business Owners in 2026

Kansas economy facts paint a mixed picture. The GDP is growing, the cost of living stays well below national averages, and unemployment is low. The catch: a tight labor market means hiring is harder and more expensive for small firms, especially in western Kansas where the talent pool is thinner.

• Kansas has a gross domestic product of about $234.7 billion in 2024 (current dollars), up from $228.2 billion in 2023 (Bureau of Economic Analysis).
• The 2023 median household income in Kansas was $72,639 in inflation-adjusted dollars, about 92.5% of the U.S. median, placing Kansas around the middle of states on household income.
• As of December 2025, Kansas unemployment stood at about 3.8%, slightly below the national rate, with a labor-force participation rate of roughly 67.5%.
• The state's cost-of-living index is around 86.7 (U.S. average = 100), meaning overall living costs are about 14% below the national average. The typical Kansas home value was in the upper $220,000 range at the end of 2024.
• Kansas has a population of about 2.94 million residents based on the 2020 Census and total employment around 1.5 million jobs.

Kansas Small Business Grants, Incentives, and SSBCI Funding

Entrepreneurs searching for a Kansas small business grant have both federal pass-through and state-administered options. The dollar amounts vary significantly depending on the program, and most require job creation or retention as a condition.

• Through the Community Development Block Grant (CDBG) Economic Development program, eligible Kansas cities and counties can obtain between $25,000 and $750,000 in CDBG funds to support private business projects that create or retain jobs, with a cap of $35,000 in CDBG funds per job and a required local match of at least 50% of project costs.
• Kansas received more than $69 million in State Small Business Credit Initiative (SSBCI) funding, which it deploys through programs such as the GROWKS Loan Fund. GROWKS can match bank financing with SSBCI capital up to $100,000 per eligible small business loan.
• Kansas has designated foreign trade zones that provide quota and duty-free entry for an unlimited period under customs supervision. If you register a new company in a Kansas Foreign Trade Zone, your business would be eligible for FTZ benefits on imported materials and components.

Kansas Small Business Development Center (SBDC) Services

The Kansas SBDC is the main no-cost advising resource for entrepreneurs who need help with business plans, financing applications, or market analysis before launch.

• The Kansas Small Business Development Center (Kansas SBDC) operates one statewide lead center with multiple regional and outreach centers serving seven regions across the state.
• In 2023, the Kansas SBDC network served approximately 2,796 small business clients statewide, with the vast majority of surveyed clients reporting that the services were beneficial (Fort Hays State University, Docking Institute survey).

Small Business Lending and Export Revenue in Kansas

Access to capital and export markets are two factors that separate Kansas small businesses that grow from those that plateau. The lending data below reflects CRA-reported bank activity; SBA-backed loans and alternative financing add more on top.

• In 2021, reporting banks made $802.0 million in small business loans to Kansas firms with revenues of $1 million or less. Total new lending through loans of $1 million or less reached $2.6 billion, including $733.8 million in loans of $100,000 or less (SBA Office of Advocacy, CRA data).
• Kansas exported $14.4 billion in goods in 2024, with transportation equipment, food products, and computer and electronic products as the top categories (Office of the U.S. Trade Representative).
• In 2023, Kansas had 3,266 identified exporting firms, of which 2,716 (about 83%) were small and medium-sized enterprises. These small firms generated $2.6 billion in goods exports, or 20.0% of Kansas's $12.8 billion in identified goods exports.

How Kansas Ranks for Small Business Tax Climate

Kansas doesn't top the charts on business-friendliness rankings, but recent tax reforms are moving the needle. The state dropped its corporate rate from 4% to 3.5% in 2024, and a shift to single-sales-factor apportionment in 2027 should help export-oriented small businesses.

• The Tax Foundation's State Business Tax Climate Index places Kansas in the lower half of states overall, but notes that the 3.5% corporate income tax rate and upcoming single-sales-factor apportionment are intended to improve competitiveness for capital-intensive and export-oriented firms.
• For tax years beginning in 2024, Kansas imposes a 3.5% base corporate income tax plus a 3% surtax on taxable income over $50,000, for a top marginal rate of 6.5%. Kansas does not impose a separate corporate franchise tax on most businesses.
• State law requires that every new Kansas LLC designates a Kansas registered agent that will be available during regular business hours at a physical address within the state.

How to Start a Small Business in Kansas (LLC Formation and Costs)

If these statistics have you leaning toward launching in Kansas, the formation process is straightforward. You can run a Kansas business search to check name availability through the Secretary of State's portal before filing.

• To form an LLC in Kansas, you file Articles of Organization with the Secretary of State. The filing fee is $160 for online filings and $165 for paper filings. Online is processed fastest and is now the standard route for most founders. For a full breakdown, see Kansas LLC cost and filing fees.
• If you want step-by-step instructions, our guide on how to start an LLC in Kansas covers everything from name reservation through EIN application.
• Self-employed individuals running incorporated businesses have a median income of $51,889, compared to $26,060 for those with unincorporated businesses. That gap alone is worth considering when you choose your business structure.
• If you'd rather have a service handle the paperwork, see our comparison of the best LLC services in Kansas.

What Entrepreneurs Ask About Kansas Small Business in 2026

Here are the most common questions entrepreneurs ask about starting and running a small business in Kansas, based on real search queries and state-specific data.

What is the major industry in Kansas?

Aircraft and parts manufacturing is the largest manufacturing export category in Kansas ($3.4 billion in 2024 exports). Agriculture and agribusiness combined contribute about $76 billion to the state economy and support 256,080 jobs. Corn, wheat, and soybean wholesaling is the single highest-revenue industry at $23.9 billion.

How many small businesses are in Kansas?

Kansas has 256,287 small businesses, which represent 99.1% of all businesses in the state. They employ 597,069 workers, or 49.5% of the private-sector workforce. Most of those firms (201,488) have no payroll employees.

Is Kansas a good state for small business?

Kansas has a cost of living about 14% below the national average, a 3.8% unemployment rate, and an LLC filing fee of just $160. The Tax Foundation ranks it in the lower half for overall tax climate, but the recent cut to a 3.5% corporate rate and no franchise tax help offset that. The tight labor market is the biggest hurdle for firms looking to hire.

What grants are available for small businesses in Kansas?

The CDBG Economic Development program offers between $25,000 and $750,000 for job-creating business projects. The state also received over $69 million in SSBCI funding, deployed through the GROWKS Loan Fund (up to $100,000 per eligible loan). The Kansas SBDC provides free advising through seven regional centers.

What is the Kansas LLC filing fee?

Filing Articles of Organization with the Kansas Secretary of State costs $160 online or $165 by mail. There's no separate franchise tax for LLCs in Kansas.

What Fortune 500 companies are headquartered in Kansas?

As of the mid-2020s, Seaboard Corporation (Merriam) is the only Kansas-headquartered company on the Fortune 500 list. Koch Industries in Wichita is one of the largest privately held companies in the world but doesn't appear on the Fortune 500 because it's not publicly traded. Garmin and Spirit AeroSystems are also major Kansas employers.

Sources

• SBA Office of Advocacy – Small Business Profiles 2023 (Kansas) – Official data on small business counts, employment, startup/closure dynamics, and CRA lending for Kansas.
• Office of the U.S. Trade Representative – Kansas Exports and Foreign Investment – 2024 export totals and top manufacturing export categories for Kansas.
• Kansas Department of Commerce – CDBG Economic Development Program – Grant amounts, per-job caps, and local match requirements for business development funding.
• Kansas Department of Revenue – Notice 23-10: Corporate Income Tax Rate Change – Confirms the reduction from 4% to 3.5% base corporate income tax for tax years beginning in 2024.
• USDA 2022 Census of Agriculture – Kansas County Profile – Farm counts, acreage, and average farm size data for Kansas.
• Bureau of Economic Analysis – Kansas GDP by Industry – State-level GDP figures ($234.7 billion in 2024) and industry-level economic output data.