In the tiny state of New Hampshire, it’s easy to get to ski resorts, hiking trails, seaside towns, and lakes, all while staying within an hour of the city of Boston. Its low crime rates and low income tax and sales tax burdens make it an excellent place to live.
If you want to start a business in the White Mountain State, its pro-business resources and incentives—the majority of which are free—will help you out!
But before you delve into the New Hampshire business world, here are a few small business statistics to help you understand the state’s entrepreneurial ecosystem.
Quick New Hampshire Small Business Statistics for Entrepreneurs
- Small businesses in New Hampshire represent 99% of all private enterprises in the state.
- Small business employees account for 49.8% of the entire paid workforce in New Hampshire.
- Between March 2019 and March 2020, 5,254 new businesses opened in New Hampshire, while 4,837 closed, for a net gain of 417.
- In 2019, small businesses in the state exported goods worth $1.8 billion.
- Racial minorities make up 5.1% of workers and own 3% of small businesses.
- Military veterans account for 8.7% of business owners.
- The per capita disposable income in New Hampshire is $61,294.
- In 2018, small businesses employed 49.8% of the people in New Hampshire, outpacing the national average.
- Women represent 40% of small business ownership.
- The 2021 CNBC “Top States for Business” report ranks New Hampshire 37th out of 50 states.
New Hampshire Small Business Statistics
1. What is considered a small business in Nevada?
For most industries, the Small Business Administration (SBA) defines a “small business” in terms of the average number of workers over the previous 12 months (ranging from 100 to over 1,500 people) or average annual receipts over time (ranging from $1 million to over $40 million).
There are currently 137,811 small businesses in New Hampshire that represent 99% of all businesses in the state.
New Hampshire accounted for 14,876 of all new business applications submitted nationwide (nearly 5.8 million) from January 2021 to January 2022, ranking eighth among states. However, when adjusting for population, New Hampshire had 1,094 applications for every 100,000 residents, which was lower than the national average, and ranked fifth lowest among states.
When establishing a business in New Hampshire, it can help to seek the services of an LLC (limited liability company) formation service that will assist you with your registration process and act as the communication liaison between your business and state authorities. To learn more, read my review of the best LLC services in New Hampshire.
2. How many people are employed by small businesses in New Hampshire?
There are 304,765 small business employees in New Hampshire that make up 49.8% of all employees in the state.
The minimum wage in New Hampshire has not increased in almost 10 years, and it will stay at $7.25 in 2021. Over the years, there have been several proposals to raise the minimum wage, but New Hampshire has remained constant with the federal minimum wage.
Tipped employees of restaurants, hotels, motels, inns, or cabins who get more than $30 in gratuities directly from customers shall, however, receive a base rate from the employer of at least 45% of the current minimum wage.
3. New Hampshire small business statistics by industry
The professional, scientific, and technical services sectors cumulatively represent the largest single industry in terms of small business investment, with a total of 21,207 small businesses currently working in these sectors. Approximately 18,012 of these firms are nonemployer businesses, 2,879 have 1–19 employees, and 316 have 19–499 employees.
With just 77 small businesses, the management of companies and enterprises industry is the smallest in the state.
4. New Hampshire small business ownership by ethnicity
New Hampshire has a population of 1,388,992 people and has had yearly population growth of 0.4% over the last five years from 2019, placing it 24th out of 50 states. White/Caucasian Americans represent the largest ethnic group at 93.1% of the population. They are followed by Hispanic or Latino Americans (4%), Asian Americans (3%), Black/African Americans (1.8%), and American Indian and Alaskan Natives (0.3%).
Here’s a breakdown of how small business ownership is distributed among these groups:
- White/Caucasian — 127,432
- Asian — 3,131
- Hispanic/Latino — 2,561
- Black/African American — 1000
- American Indian and Alaska Native — 117
- Native Hawaiian and Other Pacific islander — 20
5. New Hampshire small business ownership by gender
Women own a total of 46,274 small businesses in New Hampshire. Approximately 41,000 of these firms are nonemployer businesses, while 5,274 have employees. Men own 79,176 businesses, 61,500 of which have no employees while 17,676 have employees on payroll.
There are also 6,470 small businesses that are owned by both men and women.
6. Business taxes in New Hampshire
Standard LLCs are considered pass-through tax entities in most states, which means they do not have to pay federal or state income taxes. Instead, corporate revenue is dispersed to individual LLC members, who pay federal and state taxes on the amount they earn.
New Hampshire, on the other hand, is unique: It does not consider LLCs to be pass-through businesses, instead requiring them to pay both the business profits tax and the business enterprise tax. Individual members, on the other hand, do not owe state tax on the share of the company’s net revenue they eventually earn. The business profits tax rate currently stands at 7.6%.
I cannot stress enough how important it is to always be in compliance with New Hampshire’s tax regulations. Failure to record your taxes on time attracts legal penalties and could disrupt your business operations. However, you can hire a registered agent service that will assist you during your tax filing process and provide constant notifications so you don’t miss any impending deadlines. To learn more, read my review of the best registered agents in New Hampshire.
7. How COVID-19 affected small businesses in New Hampshire
Based on the percentage of employees in sectors with a high or medium-high level of exposure to COVID-19, New Hampshire has the 19th highest economic exposure to COVID-19 (of all states in the US).
Close to 51% of all employees in New Hampshire, or 401,549 people, work in industries with a high or medium-high level of economic exposure to COVID-19. Also, 8% of all employees in New Hampshire, or 66,656 people, work in industries with a low or medium-low degree of economic exposure to COVID-19.
8. Small business financing in New Hampshire
The Community Reinvestment Act (CRA), passed by Congress in 1977, encourages depository institutions to assist in satisfying the credit requirements of the communities in which they operate.
Large banks are required by the Community Reinvestment Act to disclose new small business loans. In 2019, reporting banks paid out $347.4 million in loans to New Hampshire firms with $1 million or less in earnings. Total reported new lending to firms was $394.3 million for loans of $100,000 or less, and $939.7 million for loans of $1 million or less.
9. Nevada small business export statistics
In 2019, a total of 2,556 identified firms exported items worth $5.6 billion from New Hampshire. Small businesses accounted for 2,181 of those exporters, or 85.3% and shipped items valued at $1.8 billion, representing 31.3% of all identified firm exports.
The Final Word
These New Hampshire small business statistics should help every entrepreneur understand what it takes to run a business in the state.
New Hampshire has much to offer both small businesses and aspiring entrepreneurs from around the world, thanks to the state’s ever-present small business support in the form of small business development centers, investment programs, readily available capital, and a pro-business collaborative environment tailored for businesses of all sizes.
- Federal Financial Institutions Examination Council
- US Small Business Administration
- Ibis World
- CNBC – Top States for Business
- The Laconia Daily Sun
- New Hampshire Employment Security
- US Census Bureau
- US Department of State