Minnesota’s Small Business Recovery
June 30, 2021
Minnesota’s economy is largely powered by small and medium sized businesses (SMB’s). SMB’s make up 99.5% of all Minnesota firms and employ nearly 47% of all Minnesota workers. Small businesses also drive job growth in the state’s economy. In 2019 SMB’s were responsible for over 22,000 net new jobs, with firms under 20 employees creating the largest share of new jobs.
The performance of Minnesota’s small business sector is thus critical to the overall health of the state’s economy.
Small businesses were disproportionately impacted by the COVID-19 pandemic, however, and face continued challenges one year after the unprecedented economic downturn in spring of 2020. Consider the following trends:
- Data from the software company Womply indicates that by June 2021 Minnesota small business revenue remained 32% below pre-pandemic levels, and 33% fewer small businesses were open than in January 2020.