South Dakota small business profile
In South Dakota, small businesses are vital to the financial well-being of the state’s economy. Their contribution is essential for economic growth since they make up almost all employer firms in the state. As entrepreneurs and innovators, small business owners represented a diverse group in 2004 and continued to keep the state’s economy productive. The Small Business Profile provides information on the performance of small businesses in the state using the most current federal data available. This Small Business Profile was prepared by the U.S. Small Business Administration and provides information on the performance of small businesses in the state using the most current federal data available.
Number of Businesses
There were an estimated 72,949 small businesses in South Dakota in 2004. Of the 23,713 firms with employees, an estimated 96.8 percent, or 22,958, were small firms. In 2004, the estimated number of employer businesses increased by 2.4 percent. The number of self-employed persons (including incorporated) increased overall by 2.2 percent, from 61,525 in 2003 to 62,855 in 2004. Non-employer businesses numbered 49,991 in 2002, an increase of 2 percent since 2001, based on the most recent data available.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; U.S. Dept. of Commerce, Census Bureau; U.S. Dept of Labor, Bureau of Labor Statistics.)
In 2002 women-owned firms totaled 15,576, an increase of 10 percent from 1997, and generated $1.6 billion in revenues. Firms owned jointly by women and men numbered 11,960 with revenues of $2.4 billion. Women represented 34.1 percent of the self-employed persons in the state.
(Sources: U.S. Dept. of Labor, Bureau of Labor Statistics; U.S. Dept. of Commerce, Census Bureau.)
In 2002, Hispanic-owned firms numbered 355, an increase of 36 percent from 1997. Black-owned firms numbered 122, a decrease of 19 percent; Asian-owned firms numbered 301, an increase of 0.3 percent; American Indian and Alaska Native-owned firms numbered 1,304, an increase of 37 percent; and the number of Native Hawaiian and other Pacific Islander-owned businesses was unavailable.
(Source: U.S. Dept. of Commerce, Census Bureau.)
There were an estimated 1,691 new employer businesses in 2004, 26.4 percent more than the previous year. Business terminations numbered 2,251 in 2004, an increase of 18.5 percent. Business bankruptcies decreased by 1.8 percent and totaled 108 in 2004.
(Sources: U.S. Dept. of Labor, Employment and Training Administration; Administrative Office of the U.S. Courts; U.S. Dept. of Commerce, Census Bureau.)
Small firms with fewer than 500 employees numbered 20,212 in 2002 and employed 189,371 individuals, or 62.4 percent of the state’s non-farm private sector. Net job gains among firms with fewer than 20 employees totaled 2,448, while large firms with 500 or more employees lost 7,522 jobs between 2001 and 2002.
(Source: U.S. Dept. of Commerce, Census Bureau, Statistics of U.S. Businesses.)
Small Business Income
Non-farm proprietors’ income, a partial measure of small business income, increased by 51.7 percent, from $2.2 billion in 2002 to $3.4 billion in 2003.
(Source: U.S. Dept. of Commerce.)
Commercial bank lenders are an important source of small business loans, and small firms usually rely on them for financing. Over the last 10 years the number of banks in South Dakota has declined. The Office of Advocacy has identified banks in each state that make the most loans to small businesses. This information is available in its banking studies at http://www.sba.gov/advo/research/lending.html.