15 Fascinating Mississippi Small Business Statistics

Agriculture and forestry are the Magnolia State’s top earners. Half the country’s farm-raised catfish comes from Mississippi and it is also a top producer of sweet potatoes, cotton and pulpwood. Other main state industries include advanced manufacturing, trade, transportation, utilities, education and health services.

In 2019, Mississippi’s GSP (Gross State Product) was $104 billion with a 5-year persistent growth rate of 0.8%. In 2020, however, most businesses remained closed due to state lockdowns in response to the Covid-19 pandemic. Some of the most affected were small businesses (SMBs). According to a survey by Main Street America on 142 small businesses, half of the respondents have seen their income decrease by more than 75% since early March 2020. 

The state legislature has approved $300 million of the state’s $1.25 billion in federal coronavirus relief funds to go towards cushioning small businesses from adverse economic setbacks.

Here are some statistics on the state of small businesses in Mississippi:

  1. There are 262,272 small businesses – 99.3% of all businesses in the state.
  1. According to a 2021 Global State of Small Business report from Facebook, 21% of Mississippi's SMBs reported reduced employment as a result of COVID-19, which is six points less than the national average (27%).
  1. At the start of April 2021, 61% of small firms in Mississippi reported lower sales. Neighboring states like Tennessee (44%), Louisiana (48%) and Texas (48%) fared better. 
  1. Small businesses employ approximately 437,242 individuals. They account for 46.5% of the state’s workforce.
  1. Self-employed individuals with their own incorporated businesses have an average median income of $47,000. For those without incorporated businesses, the average median income is $25,000.
  1. According to a survey by American Innovators, Mississippi has the fastest-growing online small businesses in the United States. Nebraska and Maine came in 2nd and 3rd respectively.
  1. State law requires that every new business designates a Mississippi registered agent that will be available during regular business hours at a physical address within the state.
  1. There 1,545 small business exporters that account for 16.4% of the state’s $11.1 billion worth of export revenue.
  1. To form a corporation in Mississippi, you need to file your Articles of Incorporation with the Secretary of State’s office. The filing fee is $50.
  1. Some services such as contractors, foresters and tattoo artists need professional licensing in Mississippi.  While this isn’t a license on the business, licensing is required in order to operate.
  1. In 2018, Mississippi banks issued 37,420 loans under $100,000 to small business owners. The cumulative value of the loans was  $625.8 million.
  1. The top five industries with the largest number of small businesses are:
    • Other services (except public administration) – 49,356.
    • Construction – 32,194.
    • Administrative, support and waste management – 27,439.
    • Health care and social assistance – 25,294.
    • Retail Trade – 24,716.
  1. Mississippi taxes personal income at exactly the same rates as corporate income. There is a corporate income tax and a corporate franchise tax. The breakdown of the corporate tax rate is as follows:
    • 3% on the first $1,000 – $5,000 of taxable income (minimum amount increases by $1,000 each subsequent year until 2022 at which point there is no tax on the first $5,000 of income).
    • 4% on the next $5,000 of taxable income.
    • 5% on income in excess of $10,000.
  1. The corporate franchise tax which applies to both traditional corporations and S corporations is based on a business’s net worth. For instance, the tax is computed at $2.50 per $1,000 of the greater of:
    • Capital used, invested or employed in the state.
    • The total assessed value of property in the state.
  1. Small businesses generated 9,212 net jobs in 2019. Firms with less than 20 employees added 5,108 net jobs while firms employing 20 to 99 employees created 1,091 net jobs.

Sources:

  1. US SBA – State Small Business Profiles.
  2. Nolo
  3. American Innovators Rural Report
  4. Mississippi Today
  5. Northside Sun
  6. Facebook – 2020 State of Small Business
  7. Ibis World