Small businesses are a crucial aspect of the economy of the Minneapolis, MN metro area, providing employment opportunities and contributing to the tax base. However, these businesses have faced various challenges in recent years, including the COVID-19 pandemic and ongoing economic pressures.
The Minneapolis, MN metro area features a diverse range of industries, including healthcare, education, manufacturing, and professional services. The fastest-growing industries in the area are construction, healthcare, and hospitality, while industries such as retail, transportation, and finance have seen declines.
Small businesses in the Minneapolis, MN metro area are defined as those with fewer than 500 employees. According to data from the U.S. Small Business Administration, there were 518,661 small businesses in Minnesota in 2020, accounting for 99.5% of all businesses in the state. These businesses employed 1.2 million workers and generated $151 billion in revenue. On average, small businesses in Minnesota had eight employees and annual revenues of $3.2 million.
The demographics of small business owners in the Minneapolis, MN metro area are diverse. Women and minority-owned businesses make up a significant portion of small businesses in the area, with over 30% of small businesses in Minnesota being owned by women and over 10% being owned by minorities. However, these businesses often face unique challenges, including limited access to capital and markets.
The COVID-19 pandemic has had a significant impact on small businesses in the Minneapolis, MN metro area. Many businesses were forced to close their doors during the pandemic, while others had to pivot to new models like online sales or curbside pickup. According to a survey by the Minnesota Department of Employment and Economic Development, nearly 40% of small businesses in the state reported a decrease in revenue of more than 50% due to the pandemic.
Small businesses continue to face challenges in the Minneapolis, MN metro area due to industry trends, demographic factors, and external pressures such as the COVID-19 pandemic. However, it is crucial to support small businesses and help them thrive to create more jobs, boost economic growth, and build stronger, more resilient communities.
Sources:
- Minnesota Department of Employment and Economic Development: https://mn.gov/deed/
- U.S. Small Business Administration: https://www.sba.gov/
- U.S. Census Bureau: https://www.census.gov/
- Star Tribune: https://www.startribune.com/