New Mexico Small Business Statistics and Data Report (2026)

New Mexico is home to 172,113 small businesses that employ 340,706 workers and represent 99% of all firms in the state. The Kauffman Index ranks New Mexico second nationally for its rate of new entrepreneurs. Here's what the latest data reveals about small business in New Mexico.

How Many Small Businesses Are in New Mexico in 2026?

The SBA's most recent profile counts every firm with fewer than 500 employees. That includes solo freelancers, family restaurants, and mid-size contractors. These numbers come from 2022 reference-year data published by the SBA Office of Advocacy in 2025.

• There are 172,113 small businesses in New Mexico, representing 99.0% of all businesses in the state.
• Of those, 138,557 are nonemployer firms (businesses with no paid employees, including freelancers and sole proprietors).
• Another 27,525 businesses have 1 to 19 employees, and 6,031 have 20 to 499 employees.
• Small businesses in New Mexico employ a total of 340,706 workers, accounting for 53.3% of all employees in the state.

Small Business Count by Industry in New Mexico

Professional services and construction dominate the count, but the shift from “Other services” at the top to “Professional, scientific, and technical services” signals a growing knowledge economy.

• Professional, scientific, and technical services lead with 22,160 small businesses.
• Other services (except public administration) follow at 17,523 firms.
• Construction accounts for 17,222 small businesses in the state.
• Health care and social assistance totals 16,647 small firms.
• Real estate and rental and leasing rounds out the top five at 15,296 businesses.

Small Businesses in Albuquerque, Las Cruces, and Santa Fe

New Mexico local businesses cluster heavily around the state's three largest metro areas. Albuquerque drives the bulk of economic activity, while Santa Fe leans toward tourism and arts-related small firms.

• Albuquerque accounts for the largest concentration of small businesses in New Mexico, with the metro area generating a significant share of the state's GDP.
• Las Cruces serves as a secondary hub, with small businesses concentrated in health care, retail, and education-adjacent services.
• Santa Fe has a high density of small firms in accommodation, food services, and arts-related industries.

If you're exploring options to launch a business here, our guide on how to start an LLC in New Mexico walks through the full process.

New Mexico Entrepreneurship Rate Ranking

This is where New Mexico punches well above its weight. Despite ranking low on many economic indicators, the state consistently places near the top nationally for entrepreneurship activity.

• In the Kauffman early-stage entrepreneurship index, New Mexico posted a rate of new entrepreneurs of 0.55% in 2021, meaning 550 out of every 100,000 adults started a business each month.
• That rate placed New Mexico second among all U.S. states for new entrepreneur activity in 2021, according to the Kauffman Foundation.
• Startups in the state created about 3.3 jobs per 1,000 residents, with a one-year startup survival rate of 77.6%.
• The Kauffman early-stage entrepreneurship index score for New Mexico was 4.4, among the top three nationally.

New Mexico Business Startups Per Capita

High startup rates don't tell the full story. New Mexico ranks low in business startups per capita when measured by employer establishments only, which filters out the large number of nonemployer firms.

• New Mexico ranks among the lower half of states for employer business startups per capita, largely because 138,557 of its 172,113 small businesses have zero employees.
• Between March 2023 and March 2024, the state recorded 6,441 small-business openings and 6,960 closings, for a net decrease of 519 establishments.
• Despite the net loss in establishment count, small businesses still added 4,651 net new jobs over that same period, representing 56.9% of the state's total net job growth.

New Mexico Business Survival Rates

Starting a business is one thing; keeping it alive for five years is another. BLS data shows New Mexico's long-term survival rates sit below national averages.

• Approximately 76.3% of new businesses in New Mexico survive their first year, based on BLS Business Employment Dynamics data for 2019 to 2024 cohorts.
• After five years, only about 48.6% remain in operation, compared to roughly 50% or higher in states with stronger support ecosystems.
• Around 25.7% of New Mexico businesses close within year one, 51.9% close by year five, and 68.3% close by year ten.
• These figures place New Mexico among the states with relatively high long-term failure rates, which reinforces the importance of early planning and adequate capitalization.

Small Business Employment and Income in New Mexico

Small firms are the primary job engine in New Mexico, but pay gaps between incorporated and unincorporated self-employed owners remain wide.

• Small businesses employ 340,706 people in New Mexico, which is 53.3% of all private-sector employees.
• Between March 2023 and March 2024, small businesses added 60,672 jobs and lost 56,021, for a net gain of 4,651 positions.
• That net gain accounted for 56.9% of all net job growth in the state over the period.
• The median income for self-employed individuals running their own incorporated businesses was $41,098 (2017 ACS data), compared to $21,722 for those running unincorporated businesses, a gap of roughly $19,000.

Who Owns Small Businesses in New Mexico?

New Mexico's business ownership demographics reflect the state's diverse population. Hispanic and minority-owned firms make up nearly half of all businesses.

• 77,485 businesses are owned by Hispanic or racial minority entrepreneurs in New Mexico.
• 85,502 businesses are owned by White non-Hispanic entrepreneurs, with 2,215 businesses owned equally by minority and non-minority groups.
• Women own 47.7% of small businesses in New Mexico, while men own 49.7%; about 2.6% are owned equally by both.

Small Business Lending and Loans in New Mexico

Access to capital shapes which businesses survive and which don't. CRA-reported data gives a snapshot of lending activity across the state, and it's relevant for anyone searching for self-employed loans in New Mexico.

• In 2023, CRA-reporting institutions made 31,709 small-business loans of $100,000 or less in New Mexico, totaling approximately $556.7 million.
• Loans between $100,001 and $1 million totaled about $1.26 billion across 7,096 loans during the same year.
• The combined total of CRA small-business lending in New Mexico exceeded $1.8 billion in 2023, covering both micro-loans and mid-size credit facilities.

New Mexico Small Business Exports

Exporting isn't just for large corporations. A significant share of New Mexico's trade activity comes from firms with fewer than 500 workers.

• In 2021, 1,325 companies exported goods from New Mexico, according to U.S. Census Bureau data.
• Of those, 1,112 (about 84%) were small and medium-sized enterprises with fewer than 500 employees.
• Exports of goods supported an estimated 15,281 jobs in New Mexico in 2021.

New Mexico Business Tax Rates and Gross Receipts Tax

New Mexico's tax structure differs from most states. There's no traditional sales tax; instead, businesses pay a gross receipts tax. The corporate income tax was simplified in 2025.

• For tax years beginning on or after January 1, 2025, New Mexico applies a flat 5.9% corporate income tax rate on all taxable corporate income, replacing the prior two-bracket schedule.
• The prior structure taxed the first $500,000 at 4.8% and income above that at 5.9% plus $24,000; that system is no longer in effect.
• Instead of a sales tax, New Mexico imposes a gross receipts tax (GRT) on businesses, with a statewide base rate of 4.875%.
• Local jurisdictions add their own increments, bringing combined GRT rates in most areas to between 5% and 9%.
• Remote sellers generating more than $100,000 per year in taxable gross receipts from New Mexico customers must register and collect GRT under the state's economic nexus rules, even without physical presence.

For a full breakdown of what it costs to form and maintain a business entity here, see our New Mexico LLC cost guide.

Starting a Small Business in New Mexico: Filing and Registration

The New Mexico Corporations Bureau, housed within the Secretary of State's office, handles all business entity filings. The state's $50 LLC fee is among the lowest in the country, and there's no annual report requirement.

• Filing Articles of Organization for a domestic LLC in New Mexico costs $50, with no annual report or renewal fee.
• Filing Articles of Incorporation for a domestic for-profit corporation costs $100 in state fees.
• New Mexico charges a $50 filing fee for a Statement of Partnership Authority for general and limited liability partnerships, with a small online convenience fee.
• Every New Mexico LLC and corporation must designate a registered agent available during regular business hours at a physical address within the state. Learn more in our guide: do you need a registered agent in New Mexico?

If you're ready to check availability for your company name, use the New Mexico business name search tool.

New Mexico COVID-19 Small Business Relief (Historical)

This section covers a completed state relief program from 2020 to 2021. These funds are no longer available, but the data contextualizes the pandemic's impact on New Mexico small businesses.

• In November 2020, New Mexico enacted a $330 million COVID-19 relief package funded largely with federal CARES Act resources.
• The package included $100 million in grants for small businesses with fewer than 100 employees.
• The relief bill also provided direct payments to unemployed workers and other emergency aid across the state.

Sources

• SBA Office of Advocacy, 2025 Small Business Profile: New Mexico – Federal reference for small business counts, employment, demographics, and lending by state.
• Kauffman Indicators of Entrepreneurship, State Profile: New Mexico – Early-stage entrepreneurship metrics including rate of new entrepreneurs and startup survival.
• New Mexico Department of Workforce Solutions, Exports and Jobs Supported – State-level export activity and SME exporter data from U.S. Census Bureau records.
• New Mexico Taxation and Revenue Department, Gross Receipts Tax – Official GRT rates, nexus rules, and corporate income tax guidance.
• Office of the Governor of New Mexico, COVID-19 Relief Package – Details on the 2020 state relief bill and small business grant allocations.
• Kauffman Foundation, State Report on Early-Stage Entrepreneurship 2021 (PDF) – Full state-by-state data on entrepreneurship rates and startup activity.