Minnesota small business statistics
Minnesota logged 73,825 business applications in 2025, up 9.1% from 2024 and 60.4% from the pre-pandemic 2019 baseline. Health care and social assistance led both private-sector establishment and job growth since 2019.
Business applications, employment, lending, tax, bankruptcy, and contracting records cover different parts of Minnesota's business economy.
At a glance
Minnesota logged 73,825 business applications in 2025, up 9.1% from 2024 and 60.4% from the pre-pandemic 2019 baseline.
Through May 2026, total applications were up 5.2% from the same months in 2025; high-propensity applications were down 11.6%.
Hennepin filed 22,561 applications in 2025, the largest county total in Minnesota. Steele led the high-volume counties after adjusting for population.
Health care and social assistance led both private-sector establishment and job growth since 2019.
SBA 7(a) and 504 approvals to Minnesota businesses reached $936.6M in FY2025 across 1,822 loans, led by health care and social assistance, manufacturing, construction, accommodation and food services, and retail trade.
Business bankruptcy cases tied to Minnesota counties rose from 239 to 316 in the 12-month period ending March 31, 2026.
New business formation
Minnesota business applications reached 73,825 in 2025, up 9.1% from 2024. Through May 2026, applications were 5.2% higher than in the same months of 2025.
Why compare with 2019
2019 is the last full year before the pandemic. The shutdown period and the business churn that followed changed EIN filing patterns. High-propensity applications totaled 9,399 through May 2026, down 11.6% from Jan-May 2025. Projected business formations within eight quarters fell 7.6% over the same period.
Census BFS counts applications for employer identification numbers. Applications are early filings; confirmed operating-business counts arrive later.
Where applications are concentrated
Hennepin is the largest application market by raw volume. Among the high-volume counties shown below, Steele stands out most after adjusting for population.
Applications relative to population
Each rate divides 2025 Census BFS applications by the county’s Census Vintage 2025 resident population estimate. Hennepin still has the most total filings, while Steele has the highest application volume relative to resident population among these high-volume counties.
Census BFS counts EIN applications. The denominator is 2025 resident population, which adjusts the filing count for scale. Startup conversion requires a business-based denominator.
| County | 2025 applications | Change vs 2024 | Change vs 2019 |
|---|---|---|---|
| Hennepin | 22,561 | +6.2% | +45.0% |
| Ramsey | 7,534 | +11.8% | +46.0% |
| Dakota | 5,697 | +4.7% | +64.0% |
| Anoka | 5,033 | +8.3% | +81.6% |
| Washington | 3,494 | +6.6% | +65.2% |
| St. Louis | 1,954 | +19.5% | +74.2% |
| Scott | 1,922 | +3.3% | +61.9% |
| Wright | 1,750 | +11.3% | +88.4% |
| Stearns | 1,719 | +11.8% | +69.4% |
| Steele | 1,675 | +34.4% | +705.3% |
| Olmsted | 1,608 | +9.7% | +69.4% |
| Carver | 1,334 | +7.9% | +59.6% |
Jobs, establishments, and wages
In 2024, Minnesota had 205,850 private-sector establishments and 2,541,147 private-sector jobs. The establishment count was 20.0% higher than in 2019, and employment was 1.0% higher.
Health care and social assistance led establishment growth.
Health care and social assistance added 7,648 establishments from 2019 to 2024. Health care and social assistance added 32,163 jobs over the same period.
BLS QCEW counts employer establishments and jobs, along with wages, payroll, and local industry structure.
| Industry | 2024 establishments | Change vs 2019 | 2024 jobs | Change vs 2019 |
|---|---|---|---|---|
| Professional services | 30,128 | +7,349 (+32.3%) | 166,692 | +6,971 (+4.4%) |
| Health care and social assistance | 25,787 | +7,648 (+42.2%) | 510,901 | +32,163 (+6.7%) |
| Other services | 20,698 | +3,432 (+19.9%) | 91,658 | +420 (+0.5%) |
| Construction | 18,401 | +1,701 (+10.2%) | 138,042 | +10,950 (+8.6%) |
| Wholesale trade | 15,845 | +2,088 (+15.2%) | 134,041 | +5,608 (+4.4%) |
| Accommodation and food services | 12,862 | +875 (+7.3%) | 223,530 | -4,472 (-2.0%) |
| Finance and insurance | 11,260 | +1,735 (+18.2%) | 137,026 | -10,457 (-7.1%) |
| Administrative services | 10,368 | +1,860 (+21.9%) | 122,157 | -12,565 (-9.3%) |
| Information | 7,331 | +3,198 (+77.4%) | 43,462 | -3,444 (-7.3%) |
| Real estate and rental | 7,042 | +712 (+11.2%) | 35,700 | +269 (+0.8%) |
SBA lending
SBA 7(a) and 504 approvals to Minnesota businesses totaled $936.6M in FY2025 across 1,822 loans. The SBA files report 20,882 jobs supported for those approvals.
Health care and social assistance drew the most SBA capital.
Health care and social assistance drew $153.5M in FY2025 SBA approvals. Manufacturing, construction, accommodation and food services, and retail trade received the next-largest approval totals.
SBA fiscal year 2025 ran from Oct. 1, 2024, through Sept. 30, 2025. The published files were current as of April 28, 2026.
| Sector | FY2025 loans | FY2025 approvals | SBA jobs supported |
|---|---|---|---|
| Health care and social assistance | 213 | $153.5M | 3,860 |
| Manufacturing | 160 | $121.0M | 2,485 |
| Construction | 260 | $102.1M | 2,203 |
| Accommodation and food services | 187 | $101.9M | 3,202 |
| Retail trade | 191 | $87.9M | 1,544 |
| Other services | 187 | $64.8M | 1,143 |
| Professional services | 165 | $61.5M | 1,347 |
| Arts and entertainment | 75 | $49.9M | 916 |
| Wholesale trade | 64 | $44.4M | 514 |
| Transportation and warehousing | 80 | $33.4M | 838 |
| County | FY2025 loans | FY2025 approvals | SBA jobs supported |
|---|---|---|---|
| Hennepin | 555 | $276.2M | 7,259 |
| Anoka | 147 | $87.4M | 2,082 |
| Ramsey | 198 | $86.1M | 2,328 |
| Dakota | 138 | $83.0M | 1,626 |
| Washington | 101 | $38.1M | 825 |
| Olmsted | 31 | $33.4M | 414 |
| Scott | 50 | $28.3M | 398 |
| Stearns | 55 | $26.8M | 1,015 |
| Saint Louis | 43 | $25.5M | 571 |
| Blue Earth | 25 | $22.8M | 232 |
The unincorporated business economy
IRS SOI data show 449,616 Minnesota Schedules C and partnership returns/forms in Tax Year 2023. Those businesses reported $96.8B in gross receipts and $9.5B in the combined income/profit measure.
Sole proprietors account for most returns.
Minnesota had 389,244 nonfarm sole-proprietor Schedules C in Tax Year 2023, with $24.5B in gross receipts and $5.5B in net profit.
Partnerships reported more gross receipts.
Minnesota partnerships filed 60,372 Forms 1065 in Tax Year 2023 and reported $72.3B in gross receipts.
| County | Returns/forms | Gross receipts | Combined income/profit metric |
|---|---|---|---|
| Hennepin | 121,576 | $39.2B | $3.5B |
| Ramsey | 42,324 | $7.4B | $627.3M |
| Dakota | 34,565 | $8.2B | $849.2M |
| Anoka | 26,279 | $2.6B | $372.5M |
| Washington | 21,245 | $3.4B | $481.3M |
| St. Louis | 12,845 | $2.4B | $5.3M |
| Scott | 12,524 | $3.5B | $431.1M |
| Stearns | 12,072 | $2.2B | $231.9M |
| Olmsted | 11,698 | $1.1B | $140.7M |
| Wright | 10,841 | $1.3B | $186.4M |
Business stress signals
Business bankruptcy cases tied to Minnesota counties rose from 239 to 316 in the 12 months ending March 31, 2026. Chapter 11 accounted for 42 cases.
Why county totals can jump
Hennepin had the largest business-bankruptcy count in the latest F-5A table. Related business cases filed in the same venue can create a sudden change in one county’s total.
Definition: U.S. Courts classifies debt as business when the debtor is a corporation or partnership, or when business-related debt predominates.
| County | Business cases, 12 months ending Mar. 31, 2026 | Change vs prior 12 months | Chapter 11 cases | All bankruptcy cases |
|---|---|---|---|---|
| Hennepin | 79 | -4 | 13 | 2,415 |
| Dakota | 33 | +14 | 5 | 986 |
| Ramsey | 26 | +7 | 1 | 1,142 |
| Anoka | 18 | +5 | 4 | 871 |
| Wright | 12 | +5 | 2 | 330 |
| Scott | 12 | +6 | 2 | 279 |
| Washington | 11 | -5 | 0 | 508 |
| Olmsted | 9 | +5 | 1 | 242 |
| Stearns | 7 | +4 | 0 | 348 |
| Goodhue | 6 | +4 | 0 | 80 |
National credit backdrop
The 2026 Fed Small Business Credit Survey appendix reported that 94% of U.S. employer firms faced a financial challenge in 2025, 38% applied for financing, and 52% of applicants were fully approved.
Federal contract demand
USAspending reports $3.6B in FY2025 federal procurement obligations to recipients located in Minnesota. USAspending assigns these obligations to the recipient’s state and includes award type codes A, B, C, and D.
| NAICS | Federal procurement category | FY2025 obligations |
|---|---|---|
| 332993 | Ammunition (except Small Arms) Manufacturing | $596.7M |
| 524292 | Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds | $248.1M |
| 332992 | Small Arms Ammunition Manufacturing | $211.2M |
| 311513 | Cheese Manufacturing | $182.3M |
| 237990 | Other Heavy and Civil Engineering Construction | $171.9M |
| 541330 | Engineering Services | $162.8M |
| 334510 | Electromedical and Electrotherapeutic Apparatus Manufacturing | $128.3M |
| 332994 | Small Arms, Ordnance, and Ordnance Accessories Manufacturing | $119.4M |
| 541990 | All Other Professional, Scientific, and Technical Services | $95.7M |
| 236220 | Commercial and Institutional Building Construction | $86.9M |
How the numbers fit together
Minnesota's business applications rose 9.1% in 2025. The employer base has expanded since 2019, with establishments up 20.0% and employment up 1.0%.
Sources and definitions
Each dataset updates on its own schedule. Annual figures use the latest complete year, and partial-year comparisons are labeled beside the relevant number.
- Census BFS monthly CSV
Updated June 10, 2026, 14:00 GMT - Census BFS county workbook
Updated June 10, 2026, 14:22 GMT - Census county population estimates
Vintage 2025 county resident population estimates - BLS QCEW annual area files
2019 and 2024 annual API files - SBA 7(a)/504 FOIA package
Updated April 28, 2026, 14:42 GMT - IRS SOI Tax Year 2023 unincorporated tables
Tax Year 2023 county combined, sole proprietor state, and partnership state tables - U.S. Courts F-5A bankruptcy XLSX
12 months ending March 31, 2026 - Fed SBCS Main Street Metrics appendix
Last updated March 23, 2026 - USAspending API
FY2025 procurement obligations
Alex Morgan turns Census, BLS, SBA, IRS, court, Federal Reserve, and USAspending records into state-by-state business comparisons.