The financial services and manufacturing sectors make up 18.3% of Ohio’s GDP (Gross Domestic Product), making them Ohio’s largest industries by GDP. The Buckeye State has the third largest manufacturing labor force behind California and Texas with a total of 699,000 workers.
Some of the noteworthy manufacturers include Midwest Fasteners, Kaufman Containers, Storopack, Flexarm and Chempace Corporation. The total yield from manufacturing was $112.24 billion in 2018.
Since the 2008 financial crisis, Ohio has ranked as one of the top ten locations for business in the US. The Small Business & Entrepreneurship Council ranked the state in tenth position for its business-friendly tax systems in their Business Tax Index of 2009. The state government tends to give small businesses the breathing room they need to succeed by offering tax incentives and grants.
Let’s have a look at some interesting statistics on small businesses (SMB) from the state of Ohio:
- There are 965,576 small businesses in Ohio that represent 99.6% of all businesses in the state.
- Private-sector employment in Ohio decreased 17.2% during the 12-month period ending in April 2020.
- To form a corporation in Ohio, you need to file your Articles of Incorporation with the Secretary of State. The filing fee is $99.
- Self-employed individuals at their own incorporated businesses have a median income of $51,000. Those without incorporated businesses have a median income of $25,000.
- There are 2.2 million small business employees in Ohio who account for 45.3% of the entire state workforce.
- The top three industries with the highest number of small business employees are:
- Health Care and Social Assistance – 358,923.
- Manufacturing – 285,256.
- Accommodation and Food Services – 279,234.
- Ohio has 14,600 small business exporters that generate 22.9% of the state’s $50 billion in total export revenue.
- State law requires that every new Ohio LLC designates an Ohio registered agent that will be available during regular business hours at a physical address within the state.
- When forming an Ohio LLC (Limited Liability Company), you need to file your Articles of Organization with the Secretary of State, along with a filing fee of $99.
- There are 69,645 self-employed individuals in Ohio who represent 7.2% of small business owners in the state.
- The state’s sales-and-use taxes are quite high. In most counties, the tax is imposed at a rate of 5.75% and in at least one county the rate is as high as 8%.
- In the fourth quarter of 2018, 5,395 businesses closed down resulting in 19,286 lost jobs. In the same period, 6,116 businesses started up, generating 22,622 new jobs in Ohio.
- During the onset of the Covid-19 pandemic in April 2020, the unemployment rate was 16.4%, up from 4.1% in April 2019.
- In 2018, banks in Ohio issued 169,948 loans under $100,000 while reporting under the Community Reinvestment Act. A total value of $2.6 billion.
- The top five industries with the largest share of small businesses are:
- Other Services (except Public Administration) – 133,522.
- Professional, Scientific and Technical Services – 119,922.
- Construction – 108,990.
- Real Estate and Rental and Leasing – 92,749.
- Retail Trade – 90,439.