Northeast Minnesota was home to nearly 20,000 nonemployer establishments in 2016. In addition to being a source of employment and personal income, these businesses are a vital part of the larger regional economy, creating opportunities for growth. In many cases, self-employed businesses have expanded and become employer establishments.

Data from the Census Bureau’s County Business Patterns program shows that Northeast Minnesota relies heavily on small businesses, with just over 50 percent of establishments reporting less than 5 employees. Another 36 percent of businesses had between 5 and 19 employees, meaning only 13.7 percent of businesses in the region had 20 employees or more. Just 17 businesses – less than 0.2 percent – in the region had more than 500 employees (Table 1).

While the number of establishments was declining overall, the region was seeing growth in the number of medium-sized businesses – those with between 10 and 99 employees – over the past decade. This is at least partly due to smaller businesses expanding, a great sign of economic growth for the region.

The largest number of the smallest businesses – those with 1 to 4 employees – are found in construction, retail trade, other services, professional and technical services, health care and social assistance, accommodation and food services, and finance and insurance. In contrast, the largest number of large employers – those with 500 employees or more – were in health care and social assistance (7 employers), manufacturing (3 employers), finance and insurance (2 employers), and mining (2 employers), while educational services, management of companies, and transportation and warehousing all had one large employer (Figure 1).

More details about business trends in Northeast Minnesota can be found at this interactive data tool on DEED’s website.

For More Information

Contact Erik White at 218-302-8413.