The Kansas economy is highly dependent on agriculture. Nearly 90% of land in the state is devoted to farming with the average farm size being around 770 acres. Kansas’ agricultural outputs are sheep, wheat, cattle, sorghum, soybeans, cotton, hogs, corn and salt. But, by far the most important cash crop in the state is wheat. 40% of all winter wheat in the US is grown in Kansas.
There is also a large presence of Fortune 500 businesses that are headquartered in the state such as Garmin, Koch Industries, Sprint Corporation and Garmin. Aircraft manufacturers like Bombardier Aerospace, Textron Aviation and Spirit AeroSystems also have manufacturing centers in the state.
Small businesses (SMBs) also have a major presence in Kansas. In fact, half of all employees in the state work for small firms. However, things haven’t been too rosy for SMBs. According to a 2019 survey of the Best States & Worst States for Business ranking by the Chief Executive, Kansas dropped ten points from position 19 (in 2018) to 29.
This was due to the former state administration’s failure to spark economic growth through tax cuts. However, in a bid to help entrepreneurs cope with the situation, the state offers certain incentives to SMBs like establishing foreign trade zones, economic development grants and a funding program called the State Small Business Credit Initiative.
Below is a list of small business statistics from the state of Kansas:
- There are 256,950 small businesses in Kansas that account for 99.1% of all businesses in the state.
- There are 605,147 people employed by SMBs representing 50.5% of all employees in the state.
- When you register a new business in Kansas, you will be able to benefit from the State Small Business Credit Initiative where funding is provided through the United States Treasury and the State Small Business Credit Initiative (SSBCI). The fund amount can vary from $25,000 to $500,000 depending on the type of program.
- Self-employed individuals running incorporated businesses have a median income of $51,889. That’s $25,829 more than those running unincorporated businesses.
- SMBs have access to economic development grants from the state. The goal of the grant is to provide gap financing to private businesses that retain or create permanent jobs in the state. The grant amount can vary from $35,000 to $750,000.
- There are 2,770 small firms in the export business. They are responsible for 25.6% of Kansas’ $10.2 billion worth of export revenue.
- 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.
- Kansas has designated foreign trade zones whose aim is to provide a quota and duty-free entry point for an unlimited period under customs supervision. If you register a new company in the Kansas Foreign Trade Zone (FTZ), your business would be eligible for FTZ benefits.
- Small business commercial and industrial loans increased by 2.1% in the first quarter of 2020. This is partly due to the effects of the Covid-19 pandemic.
- 2,009 businesses closed shop in the fourth quarter of 2018 resulting in 7,038 lost jobs. In the same period, 1,863 establishments started up, generating 7,125 new jobs in Kansas.
- To form an LLC in Kansas, you need to file your Articles of Organization with the Secretary of State’s office. The filing fee is $165.
- The Kansas corporation income tax is at a flat rate of 4% of federal taxable income; an additional 3% surtax is charged on taxable income in excess of $50,000.
- The top 3 industries with the largest number of small businesses are:
- Professional, scientific, and technical services (31,208).
- Retail Trade (27,720).
- Construction (27,514).
- The Utilities industry is the smallest in the state with a total of 152 small firms currently working in it.
- In 2018, while reporting under the Community Reinvestment Act, lending institutions in Kansas issued 38,548 loans under $100,000,a total value of $567.0 million.